🫣 Current State of the Startup Ecosystem
The Pakistani startup ecosystem in Q4 2022 is facing significant challenges this year due to external factors, making it crucial to contextualize the macroeconomic picture. As inflation rises globally, Pakistan’s startup ecosystem is grappling with a YoY inflation rate of 23.84% in November 2022, placing it among the highest in the world.
With so much happening, let’s explore where the Pakistani startup ecosystem stands today.
📌 Q4 2022 Roundup
In Q4, Pakistani startups secured $14.9 million across 6 deals, bringing the year-to-date (YTD) total to $355 million across 57 deals.
However, Q4 saw a significant slowdown:
- The amount raised in Q4 2022 was down 77% from Q3 2022 and 91% from Q1 2022.
- Compared to Q4 2021, there was a 79% reduction in funds raised.
Reported Deals in Q4:
- October: Remotebase raised $2.1 million in a pre-Series A round.
- November: BusCaro raised $0.5 million in an angel round; Waada secured $1.3 million in a seed round; Finja raised $10 million in a Series A round.
- December: Eat Food Pakistan raised $1 million in seed funding, and Valeem raised an undisclosed amount in pre-seed funding.
Top Funded Sectors:
- Fintech/Finance: $10 million
- Software Development: $2.1 million
- Insurance/Insurtech: $1.3 million
Founder Gender Breakdown:
- Male-founded startups raised $14.4 million across 5 deals.
- A female-founded startup, BusCaro, raised $500k in a single deal.
- No female co-founded companies announced funding in Q4.
Compared to the same time last year, there’s been a remarkable slowdown in deal flow due to various regional and global disruptions. More insights will be shared in our End of Year Roundup, dropping on January 2nd, 2023.
👀 December 2022 Updates
🧐 Update 1/3: ABHI Expands into UAE
Fintech startup Abhi is expanding into the UAE through a partnership with Hub71, Abu Dhabi’s global tech ecosystem.
🧐 Update 2/3: SBP Approves AFT’s EMI License Pilot
The State Bank of Pakistan has granted Akhtar Fuiou Technologies (AFT) approval to pilot their EMI license. AFT, a joint venture between Pakistan’s Akhtar Group, Chinese fintech Fuiou Technologies, and eCommerce platform JollyChic, will pilot operations for Digitt+, their agriculture-focused fintech brand, to digitize agricultural payments and credit distribution.
🧐 Update 3/3: Neem Secures NBFC License
The Securities and Exchange Commission of Pakistan (SECP) has granted fintech startup Neem a Non-Banking Financing Company (NBFC) license, strengthening Pakistan’s lending landscape with its embedded solutions.
Read Neem’s LinkedIn post here
See you in Q3! Meanwhile, subscribe to our newsletter for the latest insights and updates from the startup ecosystem!