Venture Capital Investments in Pakistani Startups
By Mashkraft Research
Investments in Pakistani HQ Startups – H1’ 2021 Highlights
- In H1’2021 , US$ 78 M were reportedly invested in 25 startups headquartered in Pakistan, by 89 VCs from 15 countries. Majority of the investors were from the USA.
- Compared to H1’2020, in H1’2021, VC funding in Pakistani HQ startups increased by 386% while the number of deals increased by 4%.
- Majority of the investments were in E-commerce, Fintech and Edtech startups in Lahore, Karachi and Islamabad.
- At least 18 VCs made more than one investment in Pakistani HQ startups in H1’2021, with Fatima Gobi Ventures, i2i ventures and Global Founders Capital leading the pack.
- Among similar N-111countries, Pakistan remained a frontier market in H1’2021, with relatively lower investment activity and higher investor focus on early stage deals.
1) N-11 (Next 11) countries is a group of countries identified by Goldman Sachs with the potential to become the world’s large economies in the 21st century. We have excluded S.Korea and Iran from our analysis.
Sources : www.crunchbase.com , Mashkraft research and analysis. Analysis excludes startups with HQs outside of Pakistan, investments in funds and debt financing.
H1’2021 Snapshot: Investments in startups with HQs in Pakistan
Investors were primarily focused on early stage fintech & ecommerce startups
Investment Trends : VC funding and deals in Pakistani HQ startups
Investments have grown significantly since H1’2019, but with high volatility
VC Backed Deals and Financing in Pakistani Startups, H1’2019 – H1’2021
Which Pakistani HQ startups raised most funding in H1’2021 ?
Tajir raised most VC funding at US$17M, while the top 10 deals jointly raised US$60 M
Who were the top investors in Pakistani HQ startups in H1' 2021 ?
18 out of the 89 VCs active in Pakistan in H1’2021 invested in more than one startup
4
Investments
Fatima Gobi Ventures
3
Investments
I2I ventures
3
Investments
Global Founders Capital
2
Investments
10K Ventures
2
Investments
Zayn Capital
2
Investments
Mentors Fund
2
Investments
Venture Souq
2
Investments
VEF
2
Investments
SOSV
2
Investments
Quiet Capital
2
Investments
Kingsway Capital
2
Investments
MOX
2
Investments
Liberty City Ventures
2
Investments
Indus Valley Capital
2
Investments
HOF Capital
2
Investments
BitRate Venture Capital
2
Investments
Sarmayacar
2
Investments
Walled City Co.
Startup investments in H1’2021: Pakistan vs. select N-111 countries
Investments and deals in Pakistan were lower compared to other N-11 countries
Number of VC Deals by N-11 Country, H1’2021
Total Reported VC Funding (US$M) by Country – H1’2021
1) N-11 (Next 11) countries is a group of countries identified by Goldman Sachs with the potential to become the world’s large economies in the 21st century. We have excluded S.Korea and Iran.
Sources : www.crunchbase.com , Mashkraft research and analysis. Analysis excludes startups with HQs outside of Pakistan, investments in funds and debt financing.
H1’2021 vs. H1’2020 startup investments : Pakistan vs. N-111 countries
Growth in funding and investments in Pakistan was relatively high among N-11 countries
VC investments in startups in N-11 countries – H1’2021 vs H1’2020
1) N-11 (Next 11 )countries is a group of countries identified by Goldman Sachs with the potential to become the world’s large economies in the 21st century. We have excluded S.Korea and Iran.
Sources : www.crunchbase.com , Mashkraft research and analysis. Analysis excludes startups with HQs outside of Pakistan, investments in funds and debt financing.
Startup ecosystem maturity in H1’ 2021 : Pakistan vs. N-111 countries
Like in most N-111 countries, VCs’ focus in Pakistan remained on early stage deals
1) N-11 (Next 11) countries is a group of countries identified by Goldman Sachs with the potential to become the world’s large economies in the 21st century. We have excluded S.Korea and Iran.
Sources : www.crunchbase.com , Mashkraft research and analysis. Analysis excludes startups with HQs outside of Pakistan, investments in funds and debt financing.
Pakistani Startup Funding League Tables : 2016 - 2021
Top Funded Ventures in Pakistan, Excluding Exits, between 2016 – 2021
US$89M
Carfirst
US$24M
Airlift
US$22M
Zameen
US$20M
Finja
US$19M
Tajir
Most Active VCs in Pakistan between 2016 and 2021
10
Investments
Sarmayacar
8
Investments
Walled City Co
7
Investments
Karavan
7
Investments
Indus Valley
7
Investments
Fatima Gobi
Sources : www.crunchbase.com , Mashkraft research and analysis. Analysis excludes startups with HQs outside of Pakistan, investments in funds and debt financing.