Q3 2025 brought in $15.2M across 6 disclosed deals, a sharp drop from last quarter’s $58M but with a healthier balance. More startups raised smaller rounds instead of one mega deal dominating the picture.
Year-on-year, Q3 edged slightly above Q3 2024 ($15M → $15.2M), showing stability despite global slowdowns. The takeaway is simple: capital is thinner, but more founders are finding a way in.
Deals and Activity
Q3 2025 closed with 9 deals (6 disclosed and 3 undisclosed), the busiest quarter since late 2024. Trukkr led with a $10M mixed equity and debt round, followed by BusCaro ($2M mix of equity and debt), Myco’s $1.5M Web3 raise, Metric’s $1.3M fintech seed, and ScholarBee’s $350K convertible note. Smaller but symbolic rounds included Pakhtun Wardrobe ($31K equity). In addition, three ventures from the i2i Scale accelerator secured undisclosed rounds, further broadening the pipeline.
Rather than capital concentrating in a single mega deal, this quarter’s spread signals greater depth and diversity, with activity cutting across logistics, mobility, fintech, Web3, edtech, and fashion
Sector Overview
Sectorally, logistics led the charge with Trukkr’s $10M, followed by mobility (BusCaro, $2M). Web3, fintech, edtech, and fashion made smaller but symbolic appearances. These emerging sectors might not be absorbing big checks yet, but they are building visibility and pipeline for the future.
Evolving Funding Models
This quarter reflected a clear shift toward hybrid financing models. Out of the six disclosed deals, four including BusCaro, Trukkr, Myco, and ScholarBee were structured as hybrid rounds, combining elements such as equity, debt, or convertible notes. Only Metric and Pakhtun Wardrobe closed traditional equity rounds.
This trend marks a notable evolution from previous quarters, where equity dominated. Founders are increasingly opting for flexible instruments that help them access capital while minimizing dilution. Investors, in turn, are experimenting with structures that balance protection and upside, showing signs of a maturing and more innovative funding landscape.
Gender Lens
On the gender front, male-founded startups still secured the majority of funding in Q3 2025 at 78% ($11.86M), but female participation continued to rise. Female-founded startups captured 13% ($2M, BusCaro), while female co-founded teams contributed 9% ($1.3M, Metric).
This quarter builds on momentum from Q2 2025, when MedIQ raised $6M, making it the second consecutive quarter where women-led or co-founded startups raised visible funding. The shift is small in size compared to male-led mega deals, but the consistency signals progress that is worth paying close attention to.
Investor Landscape
Investor participation looked balanced in number but not in value. Local players including Accelerate Prosperity, Salt Ventures, i2i Ventures, and individual angel investors from Pakistan backed early-stage rounds like BusCaro’s first tranche, ScholarBee, and Pakhtun Wardrobe. Meanwhile, international investors such as Yango Ventures (UAE), Daman Investments (UAE), Cartography Capital (USA), 500 Global (US), A-typical Ventures (Qatar), Plus VC (Abu Dhabi), and Tim Draper (US) led the larger tickets, driving the majority of disclosed capital.
Overall, local investors showed consistent participation at the seed stage, while a substantial percentage of total disclosed funding this quarter still came from abroad. Global confidence in Pakistani founders remains strong, but building deeper local growth capital is becoming increasingly important for long-term resilience.
Top Deals and Concentration
Six startups Trukkr, BusCaro, Myco, Metric, ScholarBee, and Pakhtun Wardrobe made up nearly all disclosed funding this quarter. Their success shows that Pakistan can produce investable ventures across different verticals. At the same time, it highlights a gap: the ecosystem needs more mid-sized rounds to bridge the space between small seed tickets and large Series A deals.
Signals & Stories
This quarter showed both resilience and vulnerability. More startups raised, gender diversity improved, and hybrid financing models emerged. Yet funding remains concentrated, transparency gaps persist, and reliance on foreign capital is high.
The Road Ahead
- Hybrid financing is here to stay. Convertible notes, debt, and strategic funding are becoming mainstream as highlighted in new funding pathways.
- International capital is driving the big checks. Local growth capital is still thin, which is why initiatives like i2i Investor Community are so critical.
- Sectoral breadth is widening. Logistics leads, but fintech, edtech, and fashion are growing.
If these signals hold, Q4 and 2026 could see more creative financing models, broader participation across sectors, and hopefully more domestic growth-stage funding.
This post is authored by Farwa Zahid, Senior Product and Data Associate at invest2innovate (i2i)