Deal Flow Roundup | Q1 2021

Fintech on the Rise

Growing Number of Deals

Fintech continues its strong performance from last year, with a notable spike in the number of deals. In 2020, there were 6 deals in the sector, and there is a year-over-year increase in the average ticket size, from an initial $522k in 2016 to $3.6M in 2021.

Significant Investments

Investments in the fintech sector started in 2016 with Finja’s $1M seed stage funding. Since then, significant investments include:

• Finja: $9M, $3M, $1.5M
• Sadapay: $7.2M
• Tez Financials: $1.1M

Increased Interest from International Investors

Investment Growth

International investors have shown increased interest, with a 16% year-over-year increase in the total amount invested each year compared to 2020. From 2015 to 2021, international investors have funneled roughly $110M+ into Pakistani startups, with a record-breaking $48M invested in 2020. In 2021, international investors have invested $14.7M so far, with 93% attributed to international VCs.

Promising Year for Female-Founded Startups

Record Deals

Female-founded startups might have their best year yet. In Q1 alone, there were 2 deals by female-founded startups, compared to 3 throughout 2020. The highest number of deals by female-founded startups from 2015 to 2021 stands at 4. Similarly, 4 female co-founded startups have raised in Q1 this year alone, while the highest total number of deals raised by female co-founded startups in a year stands at 8.

Record-Breaking Seed Rounds

Significant Seed Rounds

Q1 2021 saw two record-breaking seed rounds:

• Sadapay: $7.2M
• Bazaar: $6.5M

Conclusion

The surge in fintech investments, increased interest from international investors, and the promising start for female-founded startups highlight the growing confidence in Pakistan’s startup ecosystem. With record-breaking seed rounds and a continued influx of international capital, 2021 is set to be a transformative year for Pakistani startups.

Head over to our Startup Deal Flow Tracker on our website to see details of each of these deals and more: Access Deal Flow Tracker – Invest2Innovate