Pakistan: Startups Incubated at Karachi's NED University Got the Highest Funding in 2022
Karachi-based start-ups raised $236.7 million in 2022, accounting for two-thirds of Pakistan's total startup funding and almost double the previous year, according to Data Darbar. Karachi, Pakistan's largest city, is followed by Lahore with $69.2 million and Islamabad with $41.6 million. Nationally, the total funds raised by startups have been declining after hitting the peak of $173 million in Q1/2022.
City-wise Startup Funding of Pakistani Startups. Source: Data Darbar via FDI Intelligence |
Startup Funding Trend in Pakistan. Source: Data Darbar via FDI Intelligence |
Across Pakistan, the total funds raised by startups have been declining since hitting the peak of $173 million in Q1/2022. Start-ups raised just over $15m in Q4/22, the lowest figure since the first quarter of 2020 and 79% lower than the same period a year earlier, according to Data Darbar, which tracks the Pakistani start-up scene. This downward trend is at least partly due to Pakistan's current economic crisis. It also reflects a global decline in VC investments in startups.
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Riaz Haq's Youtube Channel
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Rest of the list has less than 4 data centers each
https://www.reuters.com/markets/asia/pakistani-fintech-startup-trukkr-raises-64-mln-gets-lending-licence-2023-03-07/
KARACHI, Pakistan, March 7 (Reuters) - Trukkr, a fintech platform for Pakistan’s trucking industry, said on Tuesday it had raised $6.4 million in a funding round and also received a non-banking financial company (NBFC) licence.
Trukkr offers Pakistan’s small- and medium-sized trucking companies a transport management system and supply chain solutions, and is unique in providing fintech to digitise the largely unbanked and undocumented industry.
The seed funding round was led by U.S. based Accion Venture Lab and London based Sturgeon Capital. Haitou Global, Al Zayani Venture Capital and investor Peter Findley also participated in the round, Trukkr said in a statement.
The company's business model is similar to Kargo in Indonesia, Solvento in Mexico and Kobo 360 in Africa, but has been adapted to the market in Pakistan.
Trukkr said less than 5% of trucking companies using its platform have access to financial services, often having to wait up to 90 days for payments and leaving them unable to cover expenses such as fuel, tolls and truck maintenance.
Sheryar Bawany, Trukkr CEO and co-founder, told Reuters that it was looking to launch financial products at a "reasonable risk adjusted spread" to the benchmark Karachi Interbank Offered Rate (KIBOR).
Co-founder Mishal Adamjee said there are some 20,000 drivers on Trukkr's platform, servicing 100 of the biggest companies in the country including Shan Foods, Artistic Milliners, International Industries Limited and Lucky Cement.
Adamjee told Reuters that Pakistan's $35 billion a year trucking industry is growing at 10% annually despite limited rail and water freight infrastructure.
Investor Accion Venture Lab said the Covid pandemic had shown how much the world relied on global supply chains.
"We want to bet on a company striving to tackle inefficiencies in a market filled with opportunities," it said in the statement.
According to Pakistan’s Board of Investment, projected demand for freight transport will double by 2025 and increase six-fold by 2050 to 600 billion freight tonnes-kilometre, particularly as the China Pakistan Economic Corridor kicks in.
Other freight marketplace startups in Pakistan include Truck It In, BridgeLinx and Freightix.
https://www.businesstoday.in/silicon-valley-bank/story/svb-collapse-indian-startups-should-resist-pressure-from-large-investors-to-domicile-outside-says-mohandas-pai-373082-2023-03-12
He advised founders of India-centric startups "to be careful" and "not get carried away" by investors who force companies they fund, to domicile in the US and open bank accounts there as well, according to a PTI report.
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Union IT minister to meet Indian startups amid concerns over ..
Read more at:
http://timesofindia.indiatimes.com/articleshow/98586043.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
On Friday, US regulators pulled the plug on SVB - a key lender to US startups since the 1980s - after a run on deposits made it no longer tenable for the medium-sized bank to stay afloat on its own.
SVB has exposure to over 20 startups in India and began investing here in 2003.
According to startup research advisory Tracxn, SVB has invested in several Indian firms, including Paytm, Carwale, Bluestone, Shaadi and Sarva. In October last year, SVB had invested $150 million in contract intelligence company Icertis.
Following the collapse, startup founders and investors in Mumbai exchanged rumors about which fledgling company might be the first to fall, Bloomberg reported.
India has one of the world's biggest startup markets, with many clocking multi-billion-dollar valuations in recent years and getting the backing of foreign investors who have made bold bets on digital and other tech businesses.
SVB's failure, the biggest in the US since the 2008 financial crisis, has roiled global markets, hit banking stocks and is now unsettling Indian entrepreneurs.
Two partners at an Indian venture capital fund and one lender to Indian start-ups told Reuters that they are running checks with portfolio companies on any SVB exposure and if so, whether it is a significant part of their total bank balance.
An Indian founder told Bloomberg News he failed to retrieve company funds and is now left only with working capital. Another was scurrying to stop and reroute customer payments into his company’s SVB account, while also setting up new arrangements for salary payments. Three founders and a startup investor said they hadn’t slept in 48 hours.
https://finance.yahoo.com/news/internet-startup-maqsad-scores-pakistan-070000407.html
European seed investor Speedinvest leads round by Karachi firm
Company bets on rising demand for after-school tutoring
Pakistan’s Maqsad raised the nation’s largest funding round by an education technology provider, showing that some startups in the nascent market are attracting investors despite a global venture financing slump.
The Karachi-based company raised $2.8 million in an oversubscribed seed round led by Speedinvest GmbH, one of Europe’s largest seed investors, and existing backer Indus Valley Capital, according to co-founder Rooshan Aziz. Stellar Capital, Alter Global and angel investors also participated.
Pakistan’s venture funding was little changed at about $350 million last year, but startups including AdalFi and Truckrr have raised sizable rounds for the market this year. The nation has the world’s fifth-largest population with a high proportion of young people.
“The ecosystem is going through a bit of a shake, but the companies which you know are solving fundamental basic problems, they’ll survive,” Aziz said in an interview. Maqsad’s operations are relatively lean and scalable and its education content always remains relevant, Aziz said.
Education spending in Pakistan is estimated at $37 billion by 2032 with a quarter of this going to after-school academic support, the target market for Maqsad, according to the startup. The mobile-only service targets students on grades nine to twelve and offers cheaper rates than brick-and-mortar tutoring companies. Its services include a feature that allows students to take a photo of a question and receive an answer instantly.
The app has been downloaded more than a million times and it has answered 4 million queries in the past 6 months. The startup can impact millions of students and become one of the most successful businesses in Pakistan, said Philip Specht, a partner at Speedinvest, which has one edtech unicorn in its portfolio.
The startup was founded by high-school friends Taha Ahmed and Aziz, who went to the London School of Economics and worked in the city before returning to Karachi to start the venture. The startup will start monetization in the coming months and may partner with other public and private institutions, Aziz said.
“This is an interesting time for edtech because globally the hype has kind of settled down after Covid,” said Ahmed. “So only serious companies are being funded in this space.”
https://www.dawn.com/news/1743320
US Ambassador Donald Blome has said that the US is Pakistan’s largest export market, and the US investment is seen coming to Pakistan more and more every year.
He was speaking at the US-Pakistan Innovation Expo in Islamabad that showcased the success stories of US government-sponsored Pakistani startups.
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Senior Adviser for the Asia Foundation Pakistan Haris Qayyum expressed appreciation for the ongoing collaboration with the US embassy and National Incubation Centre to highlight success of Pakistani startups.
He said the US-Pakistan Innovation Expo was an endorsement of Pakistan’s dynamic tech entrepreneurs. It exemplifies Pakistan-US bilateral trade, foreign direct investment and technological innovation.
“The Asia Foundation is committed to collaborative efforts supporting Pakistan’s tech ecosystem, as we continue. The Asia Foundation is honoured to partner on initiatives that value entrepreneurship and innovation. It is our goal to support Pakistan’s sustainable development and inclusive growth,” he said.
The expo featured a speaker session for venture capitalists and angel investors led by an American expert. Business leaders and investors from Pakistan, the Middle East and the United States attended the event and discussed opportunities and challenges in the Pakistani startup ecosystem.
Project Director at the National Incubation Centre Parvez Abbasi said he was thrilled to see the US-Pakistan Innovation Expo come to fruition.
He said the event was a demonstration of the power of collaboration between the two nations and the endless possibilities “that arise when we combine our talents and resources”.
The delegates at the expo showed great enthusiasm for the event and expressed confidence that it would encourage further investment opportunities and potential trade partnerships between the US and Pakistan.
This is not supported by anything from Google.
The only report that comes even remotely close is "2022 Solution Challenge winners"
https://developers.google.com/community/gdsc-solution-challenge/winners
There are no teams from South Asia in top 3.
It shows that there is one Indian team (GetWage) in top 10.
It also shows two Pakistani teams (dyslexic and Saathi) and 13 Indian teams (Cosapa, Anxily, Pulse, Scrizzel, GetWage, Proctify, DeCarbonUs, Smart Agriot, Feed The Need, ConnectNHelp, vAldya, WildEye) in top 50.
There are no Bangladeshi teams listed among top 3, top 10 or top 50 winners.
This is not supported by anything from Google.
https://cphof.org/contest/gcj
In Google Code Jam 2022, there were no winners from South Asia among top 25.
In Google Code Jam 2021, there were no winners from South Asia among top 25.
In Google Code Jam 2020, there were no winners from South Asia among top 25.
In Google Code Jam 2019, there were no winners from South Asia among top 25.
In Google Code Jam 2019, there were no winners from South Asia among top 25.
In Google Code Jam 2019, there were no winners from South Asia among top 25.
In Google Code Jam 2018, there were no winners from South Asia among top 25.
https://codeforces.com/ratings/countries
Country Ratings:
Rank Country Member Count Rating
1 China China 4556 (21275) 3463 (3510)
2 United States United States 569 (2716) 3274 (3317)
3 Japan Japan 415 (2478) 3215 (3269)
20 Indonesia Indonesia 226 (1233) 2522 (2608)
21 Romania Romania 237 (1361) 2521 (2622)
22 India India 15342 (54396) 2512 (2647)
22 Serbia Serbia 82 (394) 2512 (2657)
30 Brazil Brazil 339 (1823) 2385 (2527)
31 Argentina Argentina 81 (322) 2366 (2507)
32 Georgia Georgia 137 (625) 2337 (2402)
33 North Korea North Korea 18 (117) 2335 (2624)
34 Bangladesh Bangladesh 4807 (12386) 2328 (2387)
78 Slovenia Slovenia 10 (65) 1761 (2194)
79 Vatican Vatican 9 (28) 1749 (2126)
80 Pakistan Pakistan 116 (236) 1737 (1838)
81 Saudi Arabia Saudi Arabia 73 (211) 1729 (2020)
82 Iceland Iceland 13 (43) 1709 (2103)
83 Turkmenistan Turkmenistan 38 (166) 1700 (2126)
84 Belgium Belgium 15 (101) 1644 (2227)
https://pakobserver.net/daftarkhwan-partners-with-paf-to-launch-daftarkhwan-alpha/
Daftarkhwan is launching its newest coworking space- Alpha, in the National Aerospace Science and Technology Park (NASTP), in partnership with Aviation City Pakistan, a project spearheaded by the Pakistan Air Force.
Alpha opened its doors this December, 2022- Situated in the Old Islamabad International Airport, Alpha provides a unique chance for enterprising tech companies to engage with the innovation ecosystem focused on Aerospace, IT and Cyber Tech domains.
Adjacent to Alpha, NASTP also boasts Pakistan’s very first National Incubation Centre with an aerospace vertical and a specialized focus on deep tech, funded by Ignite, a subsidiary of the Ministry of Information Technology. Daftarkhwan Alpha has a 450+ member capacity and brings you Daftarkhwan’s signature design and vibrant workspaces including amenities such as military-grade security, secure parking, a 10,000 sq. ft. cafe and a podcast room. Furthermore an on-site daycare facility, banking centers, ATMs and one-window legal and regulatory support facilities are planned to launch this January.
https://www.bloomberg.com/news/articles/2023-05-12/pakistan-s-abhi-issues-first-sukuk-bond-for-a-fintech-in-region#xj4y7vzkg
Pakistan’s financial platform Abhi has raised the first-ever Sukuk bond for a fintech firm in the region, opening a new funding line for startups that have seen a slowdown in venture capital.
The Karachi-based startup raised 2 billion rupees ($6.8 million), an industry first for the Middle East, Africa and Pakistan region, said Omair Ansari, chief executive officer and co-founder. Demand exceeded expectations with subscriptions reaching twice the anticipated amount, he said in an interview.
https://www.globalvillagespace.com/google-and-pakistan-collaborate-to-drive-it-education-45000-scholarships-announced/
Pakistan’s Federal Minister for Information Technology and Telecommunication, Syed Aminul Haq, announced a groundbreaking agreement with Google during the Startups for Industries and IT Exports conference held at the Korangi Association of Trade and Industry (KATI). The agreement entails 45,000 scholarships to be provided by Google, with the aim of increasing the number to 450,000 in the following year. Notably, at least 40 percent of these scholarships will be reserved for women. This initiative marks a significant step forward in promoting IT education and fostering the growth of Pakistan’s digital industry.
Expanding Educational Opportunities
The collaboration between Pakistan and Google sets out to address the pressing need for skilled IT professionals in the country. The allocation of 45,000 scholarships signifies a remarkable increase from the previous year’s 15,000 scholarships. By targeting women, the government aims to bridge the gender gap in the tech industry, empowering more female individuals to pursue careers in IT. This initiative recognizes the importance of diversity and inclusion in driving innovation and technological advancements.
Empowering the IT Industry
Minister Aminul Haq emphasised the government’s commitment to the growth of the IT sector by announcing the construction of a dedicated building at NED University, with an investment of $1.6 million. The facility will serve as a hub for gaming and animation, nurturing local talent and further propelling the industry forward. These efforts align with the government’s vision of promoting startups, gaming, and animation within the country, leading to increased employment opportunities and economic growth.
Supporting Startups and Innovation
The conference brought together industry experts, entrepreneurs, and policymakers to discuss the importance of startups and innovation in the IT sector. Senator Abdul Haseeb Khan highlighted the crucial role that research and development play in driving industry growth. He also emphasised that startups today no longer require massive investments, thanks to the conducive environment and government support. With the increase in the number of incubation centres from five to eight in just three years, Pakistan is nurturing a vibrant ecosystem for startups to thrive.
Boosting IT Exports
Deputy Patron of KATI, Zubair Chhaya, lauded the efforts of Minister Aminul Haq, acknowledging the significant growth in Pakistan’s IT exports. From a modest $1 billion in exports, the sector has witnessed a remarkable surge to $2.6 billion at the end of the last financial year. This growth places Pakistan on a promising trajectory, showcasing its potential to compete with neighbouring countries. To further bolster the IT industry, Nighat Awan, the Senior Vice President of KATI, called for the abolishment of duties on machinery and IT-related products, fostering an environment conducive to expansion and innovation.
Amir Husain
https://www.forbes.com/sites/amirhusain/2023/03/29/lahores-tech-renaissance-from-astrolabes-to-ai/?sh=1388ed2e12c8
Contributor
Amir Husain is the Founder & CEO of the global AI company, SparkCognition, and the CEO of SkyGrid.
Zaib and I just concluded a fascinating visit to Lahore, Pakistan. We were joined on this trip by Prof. Bruce Porter, former Chairman of UT Austin Computer Science and Chief Science Officer of SparkCognition, along with colleagues from SparkCognition, SkyGrid, and Navigate.
Lahore is an ancient and vibrant city, once one of the largest manufacturing centers of mechanical computers, called Astrolabes. Built by Muhammad Muqim and his family in the 16th century, these computers came hundreds of years before the Jacquard Loom or Charles Babbage’s Analytical Engine. The city is now busily reinventing itself as a modern hub for entrepreneurship and academia. Our journey unveiled numerous innovative startups, cutting-edge research projects, and the thriving connections between the city’s entrepreneurial and educational ecosystems.
Lahore University of Management Sciences (LUMS)
Our first public event was at the Lahore University of Management Sciences (LUMS), a prestigious institution renowned for its research and entrepreneurial spirit. Prof. Porter and I had the opportunity to deliver talks on entrepreneurship and artificial intelligence (AI) to an enthusiastic audience of students and faculty members.
Prof. Porter's talk focused on the three generations of AI, tracing its development from search algorithms to expert systems and the Generative AI explosion. The lecture provided insights into AI's potential to transform industries and our daily lives.
After the talks, we connected with professors and students, learning about their innovative startups and groundbreaking research projects. It was inspiring to see the passion and drive on display at LUMS.
IoT, EVs, and Quantum, Oh My!
We encountered three standout teams pushing the boundaries of technology and innovation. The first was the quantum computing group at LUMS which has developed and indigenously built an experimental quantum information processor. I was told by Dean Anwar of the Syed Babar Ali School of Science and Engineering (SBASSE) that this device has two entangled physical qubits based on single photons from a heralded source. This effort lands LUMS on a short list of global quantum computing research organizations. Applications of quantum computing may eventually revolutionize materials science and much more. It was quite impressive to see a cutting-edge effort like this underway at the school.
Amir Husain
https://www.forbes.com/sites/amirhusain/2023/03/29/lahores-tech-renaissance-from-astrolabes-to-ai/?sh=1388ed2e12c8
Another intriguing venture spun off from LUMS is a startup that develops affordable three-wheel electric vehicles (EVs). As the world increasingly turns to sustainable transport solutions, this company aims to cater to the growing demand for cost-effective EVs in Pakistan and beyond.
The third group is running an agri-tech research initiative that combines AI and the Internet of Things (IoT) to control large-scale agricultural processes autonomously. The project seeks to optimize variables such as fertilizer, water, and pesticide, and monitor plant health, thereby increasing productivity in the farming sector.
Technologies such as these can lift the local economy, increase global collaboration, and scale exports.
Aitchison College
Our next stop was my old alma mater, Aitchison College, a prestigious K-12 school founded in 1885. Boasting one of the world's most beautiful campuses on a sprawling 200 acres of land, the school has evolved from an elite institution to offering full-ride scholarships for applicants from diverse backgrounds.
Michael Thomson, the Principal of Aitchison College, and his lovely wife, Elizabeth, gave us a tour of the school's museum, the impressive chemistry labs, and the nearly complete Artificial Intelligence, Robotics, and Biotech building. This new facility will be a massive asset for Aitchison and the student community, bringing research and entrepreneurship to the high school level.
One of the most inspiring stories we heard was that of a young graduate from the tribal belt along the Afghan border in North Waziristan. Upon meeting this impressive young gentleman, we learned that after receiving a full scholarship at Aitchison, he is now heading to Dartmouth for higher studies – a transformative opportunity for him, his family, and his village.
Entrepreneurs in Lahore
During our trip, we interacted with numerous entrepreneurs who have contributed significantly to Lahore's entrepreneurial ecosystem. Among them was the legendary Syed Babar Ali, founder of LUMS and Chairman of Packages Ltd. Babar Ali is one of the most admired Pakistanis globally. In his long list of laurels is his dedication to environmental conservation and a term as the President of the World Wildlife Foundation (WWF), which he took over from Prince Philip, Duke of Edinburgh, in 1996. His contributions to industry and education are immeasurable. At the young age of 97, he continues to work from his office daily, maintaining a hectic and full schedule. His unwavering dedication and passion are truly inspiring.
We also met Aezaz Hussain, the founder of Systems Ltd., Pakistan's oldest software company. Mr. Hussain has led his company with great poise for over forty years. He has now expanded his enterprise globally through a network of affiliated companies. The Systems Ltd. network encompasses businesses in the UAE, Australia, Saudi Arabia, India, Europe, and the US. With around 10,000 employees, Systems is experiencing rapid growth and solidifying Pakistan's position in the global software industry.
Nabeel Ahmed, the founder of Core9, a new AI services company focused on industrial applications and a SparkCognition partner, took us on a tour of the Sundar Industrial Estate. Here, we learned about the nearly 650 manufacturing companies based in the park, spanning industries such as pharma, textiles, TVs, and chemicals. Meeting one of the newest SparkCognition clients, a multinational chemical manufacturer also located within the Sundar Industrial Estate, was exciting and inspiring.
Amir Husain
https://www.forbes.com/sites/amirhusain/2023/03/29/lahores-tech-renaissance-from-astrolabes-to-ai/?sh=1388ed2e12c8
The Lahore-based team at FiveRivers Technologies has been a tremendous partner for SparkCognition. But FiveRivers also impressed us by showcasing a suite of their domestically built software products gaining traction in international markets. Their SmartWindows application is one such example. The application enhances productivity for power users by supercharging window and state management on PCs. It’s quickly gaining users worldwide.
Later that night, at a wonderful ecosystem dinner organized by Usman Malik of power company, PITCO and Mahmud Hiraj of private equity firm, Baltoro Capital, we met many other members of the innovation ecosystem in Lahore. Usman heads the power plant design arm of PITCO, which traces its origins back to 1938. Mahmud is a founding partner at Baltoro Capital, a leading private equity firm in Pakistan. Mahmud moved back to Lahore after spending 15 years in the finance industry in North America. His fund, Baltoro, is Pakistan-focused and capitalizes on the country’s growing consumer market and rising export competitiveness.
Export is a key area of focus for many Pakistani entrepreneurs, particularly those building high-tech products. One of the guests at the ecosystem dinner was Salem Rehman of EMCO Industries. EMCO is Pakistan's premier manufacturer of high-voltage products for the electric grid. His company has a long history of catering to the domestic and regional markets but has now also started exporting to the United States.
Wrapping up
Our trip to Lahore allowed us to witness firsthand the energy and drive of Lahore’s entrepreneurs. The city is full of innovative startups, research projects, and academies focused on scientific development. This varied and fast-growing ecosystem is a testament to Lahore's immense potential and creativity.
As we continue our work in Austin, build new relationships in Munich, and explore partnerships in Lahore, we hope to contribute to the growth of entrepreneurial communities in all these innovation centers. By fostering connections between these vibrant cities, we can nurture AI and broader S&T collaborations that have the potential to change the world. The unyielding passion of the people we met makes us optimistic about the future of Lahore, of Pakistan, and indeed, of the world.
https://mmnews.tv/lmkt-teams-up-with-insead-to-launch-incubation-program-at-nic-karachi/
KARACHI: LMKT, a leading full-service technology company in Pakistan specializing in tech incubation and IT solutions, has announced its collaboration with researchers from renowned global business school INSEAD to launch the XSeed Incubation Program in collaboration with NIC Karachi, Pakistan’s largest tech incubator.
The XSeed Incubation Program is a 12-month initiative that supports early-stage venture development and fosters the growth of new startups. Drawing on the successful experiences from other global markets, the program adopts rigorous frameworks developed by INSEAD’s experts in entrepreneurship and strategy. The collaboration with industry leaders ensures that the program offers tailored support to Pakistani entrepreneurs, enabling them to thrive in the dynamic business landscape.
NIC Karachi, funded by Ignite and operated by LMKT, is a dedicated incubation center and startup accelerator that has played a pivotal role in empowering innovative entrepreneurs through mentorship, training, and access to funding.
With a remarkable track record of incubating over 299 startups, creating more than 99,000 jobs, and raising Rs. 8.1 Billion in investment, NIC Karachi continues to spearhead Pakistan’s entrepreneurship scene.
Atif R. Khan, CEO LMKT, expressed his enthusiasm about the collaboration, stating: “We are thrilled to partner with researchers from INSEAD to launch the XSeed Incubation Program in collaboration with NIC Karachi.
This initiative reflects our commitment to foster the growth and development of the startup ecosystem in Pakistan. By combining LMKT’s expertise in scalable IT solutions and the global knowledge of INSEAD researchers, we aim to provide aspiring entrepreneurs with a transformative platform to turn their ideas into successful businesses.
Dr. Chiara Spina, Assistant Professor, Entrepreneurship and Family Enterprise at INSEAD, highlighted the significance of this collaboration, stating, “We are excited to join forces with LMKT and NIC Karachi to launch the XSeed Incubation Program. This partnership exemplifies INSEAD’s commitment to fostering real change through entrepreneurship and supporting the growth of innovative companies. By combining our expertise in entrepreneurship and strategy with the vibrant ecosystem of NIC Karachi, we aim to empower Pakistani entrepreneurs and drive impactful change in the startup landscape of Pakistan.”
Faizan Laghari, Project Director NIC Karachi, emphasized the importance of this collaboration, saying, “This partnership with researchers from INSEAD and LMKT marks a significant milestone for NIC Karachi. It further strengthens our mission to empower aspiring entrepreneurs and nurture innovation within Pakistan. By leveraging the expertise and global network of INSEAD researchers, we are confident that the XSeed Incubation Program will provide invaluable support and resources to our startup community, enabling them to thrive and make a lasting impact on the entrepreneurial ecosystem of Pakistan.
https://news.crunchbase.com/venture/funded-pakistan-based-startups-aftab/
In an interview with VC and “Shark Tank Pakistan” judge Faisal Aftab, published today, we discussed the not-very-heavily funded Pakistani startup scene.
To accompany, we thought it might be useful to provide a more comprehensive look at the country’s companies that actually have been successful in raising capital.
So, with that in mind, we put together a list of 33 of Pakistan’s more prominent funded startups in sectors like delivery, e-commerce and online banking.
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A ‘Shark’ Explains Why Pakistan Has An Underfunded Startup Scene
https://news.crunchbase.com/venture/pakistan-underfunded-startup-scene-aftab-zayn-vc/
As founder of Pakistani startup investment fund Zayn Venture Capital, Faisal Aftab has spent plenty of time grilling entrepreneurs. Never before, however, has he done it in front of an audience of millions.
Aftab, who spoke to Crunchbase News via an oft-spotty hotel Wi-Fi connection, was in Karachi to begin filming the first episodes of “Shark Tank Pakistan.” There, he will join a panel of judges to vet pitches from a selection of camera-ready founders.
The lineup won’t be business-as-usual for the U.S.- and U.K.-educated Aftab, whose firm has to date focused on fintech, logistics and e-commerce. While these may be compelling sectors for venture returns, consumer products — like food and beauty products — will likely play better for a TV and YouTube audience.
Oddly, the Shark Tank filming was coincidental, as we’d originally discussed an interview a couple months ago. The aim was to get some insights into funding to the region, with an eye to seeing why Pakistan — a country of 235 million people with widespread smartphone adoption and plentiful entrepreneurial and tech talent — has attracted rather meager sums of startup investment to date.
True, there are some Pakistani startups that have raised good-sized rounds, such as courier service PostEx, online grocery service Krave Mart, and student loan provider EduFi (founded and led by fellow shark Aleena Nadeem). But total investment is still measured in the hundreds of millions — less than a single mega-round for a gen AI unicorn these days.
Perhaps the tides are shifting. Pakistan was a latecomer in wireless infrastructure, delaying uptake of popular apps, said Aftab. These days Pakistanis are making up for lost time with stepped-up adoption of digital payments and other app-enabled tools.
Following are some of the topics we we touched on in our discussion:
The motivation to launch a Pakistan-focused venture fund
Aftab said one motive was to seek out opportunities around growing access to smartphones and reliable internet connections. Pakistan was a late bloomer in this area, as 3G and 4G didn’t arrive until 2014 and 2015. Because most of the population can’t afford desktops and laptops, smartphones are their primary device for accessing the internet.
Today, per Aftab, Pakistan is still in its “first wave” of app economy startups. Zayn’s portfolio is reflective of this, with companies in areas including online grocery delivery, instant loans, digital freight management and fashion e-commerce.
Fintech is a particularly huge opportunity, Aftab observed, given that historically banks have not done much consumer lending in Pakistan, and processes like credit scoring were not widespread. Digital payments adoption has also been on a tear.
https://news.crunchbase.com/venture/pakistan-underfunded-startup-scene-aftab-zayn-vc/
Pakistan’s slowing investment pace
Investment in Pakistan started to take off in 2019 and then “rose like crazy” during 2021, Aftab said. After that, however, funding to the region took a tumble, along with overall global venture investment.
“What we’re missing right now is the growth capital,” he said. That leaves many existing funded startups and their backers in a challenging predicament as they look to finance further scaling. He’s said he’s optimistic, however, that the current slowdown will prove temporary.
How the Shark Tank deal flow is shaping up
Aftab said sharks are not allowed to see any of the deal flow, but he’s expecting a mix of both tech and nontech, and “all of the judges are putting in personal capital.” On the nontech side in particular, there are a lot of companies that have had no previous funding.
A lot of it is going to be consumer goods. Within Pakistan, Aftab said he’s seeing a burgeoning industry for a lot of consumer products such as organic shampoos, oils, local foods and furniture.
The show is expected to launch to the public either late this year or early next, so we’ll likely have to wait for a fuller picture of who’s vying for the sharks’ attention and capital.
Pakistan’s growing reliance on domestic products
Aftab noted that much of the growth in domestically produced consumer products is relatively recent.
Basically, what happened when the U.S. raised interest rates in 2022 is the dollar went up and caused the cost of energy to skyrocket for energy importing countries like Pakistan, he said. In the past there was little point producing some products domestically because it was cheaper to import them. But now, the real effective exchange rate boosts the need to manufacture domestically.
“It’s created a massive opportunity,” said Aftab, adding that he’s surprised at how many domestic products he’s buying these days — particularly in categories like soap and shampoo — where he used to purchase imports.
Cleantech as a growth market
I observed that to date, there doesn’t appear to be much cleantech startup investment in Pakistan, and that seems a bit surprising given the seriousness of air pollution in Lahore and other cities, extreme heat, water scarcity and other issues.
Apparently, however, this is an area where growth is expected to pick up.
“It’s actually happening now,” Aftab said. If one looks at thematic investors, they were more interested in platform and fintech opportunities for their funds a few years ago. But now there are some investors focusing on climate- and cleantech-related startups.
Recently, for instance, Zayn looked at a company focused on efficiency in HVAC systems for big buildings. And today, he said, “the funds that are raising, they all have a cleantech allocation or a climate allocation.”
https://www.menabytes.com/qist-bazaar-series-a/
Karachi-based fintech Qist Bazaar has raised $3.2 million in a Series A round led by Pakistan-focused VC Indus Valley Capital, and joined by Asian investor Gobi Partners. The firm previously raised money from Bank Alfalah, a leading Pakistani commercial bank.
Founded in 2021 by Arif Lakhani, Qist Bazaar is a buy now pay later (BNPL) platform that allows users to purchase electronics, mobile phones, home appliances, and even motorbikes, on installments. Unlike other BNPL services globally or in the Middle East, Qist Bazaar focuses on serving the unbanked and underbanked majority.
The platform offers these products through its website or showrooms across different cities in Pakistan. Qist Bazaar is licensed by the Securities and Exchange Commission of Pakistan (SECP) as an NBFC (Non-banking Financial Company) and has disbursed over 55,000 product loans amounting to $12 million, in three years.
The Pakistani startup in a statement said that it caters to different groups of customers, ranging from those with no financial history to individuals already banking at established financial institutions, “By adopting a simple eligibility criterion—“Every Pakistani”—Qist Bazaar has enabled underserved groups such as domestic workers, rickshaw drivers, students, and micro-entrepreneurs to access installment-based financing,” noted the statement.
Qist Bazaar plans to use the latest funds to expand its product portfolio, enhance its tech, and scale its operations across the country.
Arif Lakhani, co-founder and CEO of Qist Bazaar, said, “At Qist Bazaar, we are committed to bringing the fundamental needs of Pakistanis within their reach. Home essentials like ceiling fans and water dispensers are necessities, not luxuries, yet many cannot afford them. With the support of our investors, we offer flexible payment plans, making these essential items more accessible to everyone.”
Aatif Awan, Founder and Managing Partner at Indus Valley Capital, commented, “We see enormous potential in Qist Bazaar’s ability to fundamentally reshape how consumer financing is done in Pakistan, similar to what Bajaj Finance did for India. What excites us here is not just the market opportunity but the impact that Qist Bazaar can have on the everyday lives of millions of Pakistanis.”
The startup claims to be EBITDA-positive since day one, reflecting its strong unit economics and focus on sustainable growth. Its statement also noted that the platform has a low delinquency rate, without sharing any specific details about it.