Venture capitalists injected more than $85 million in Pakistani startups in the first five months of 2021, with fintech companies riding a wave of interest by overseas investors, according to data from Invest2Innovate Ventures (I2I), which supports early-stage enterprises in untapped developing markets.
According to the industry experts, Pakistan’s increasing mobile phone penetration, a widely untapped market, and growing young population are major attractions for foreign funding in startups. Official data shows Pakistan has 85 percent teledensity, with 183 million cellular, 98 million 3G/4G, and 101 million broadband subscribers.
Some of the major startups that raised funding included:
TAG, Pakistan’s first digital financial super app, announced last week that it had closed $5.5 million in a pre-seed round led by Venture Capital Quiet Capital management and Liberty City Ventures from the US, along with Fatima Gobi Ventures.
The KTrade app, which launched in 2019 and enabled investors to trade in the Pakistan Stock Exchange, raised $4.5 million in a funding round spearheaded by Hong Kong-based investment firm TTB Partners and New York-based VC HOF Capital.
Abhi, a Karachi-based salary advance platform, this week raised $2 million in a seed round led by Vostok Emerging Finance. Village Global, a US-based venture capital firm focused on early-stage startups, also took part in the round, marking its first fintech investment in Pakistan.
Source: Arab News