Pakistani startups raise $345 million funds by November-end 2022

Despite the global economic slowdown and the challenge of the high cost of doing business, Pakistan remained an attractive market for investors in innovative business models which depicted overall funding of $345 million in startups by November 2022.

According to data piled up by a research site, the investment received by Pakistani startups stands slightly higher at $5 million or 1.4% to reach $345 million by November 2022 as compared to a $340 million funding received by startups in a similar period of the last year.

Pakistan may be going through a paradox, experiencing the best and worst of times. With utmost certainty, we can say that this country is full of opportunities with many gaps to fill, where small startups are solving big problems in various sectors from agriculture to finance and beyond, said Hassan Mumel, an official of a growing fintech operator, ABHI.

To all the new founders, tread carefully in the coming months, solving what you solve best, staying true to your vision and mission, and making wise decisions to not just survive but thrive in and out of Pakistan, he added.
The startups are not only creating business opportunities in mainstream sectors but also enhancing the overall size and dimension of these sectors while facilitating customers through their innovative products and services.
Pakistani startups raised $12 million in disclosed funding across four deals in November, said, a research site techshaw.

The four deals included $10 million raised by Finja in Series A2 funding from HBL and Sturgeon Capital;  $1.3 million attracted by Waada raised in funding from undisclosed investors.; $ 0.5 million received by BusCaro in Seed funding from multiple angel investors; and $ 0.25 million by BizB in Seed funding from Accelerating Asia.
The overall investment/ funds received by startups in Pakistan stood at $284.8 million by end of the first half of 2022. The value of the investment surged to $328 million in the next quarter whereas it now stood at $345 million with one month still to go.

Pakistan is an attractive economy for foreign and local investors who continued to explore its potential through funding in startups in multiple sectors, said Syed Azfar Hussain, Project Director National Incubation Program Hyderabad.

However, he added, the expected inflows of funds from various Venture Capitalists (VCs) remained slow in the second half of 2022 due to the global economic slowdown and local political unrest, which may likely to continue in the next year.

The startup founders should work consistently on innovation maintaining the quality of service while adopting technology and good business practices to remain viable and sustainable in the local market, he further said.
In order to attract funds from foreign investors and VCs, startups should develop their business model on the basis of scalability while their models should be replicated and expanded to more countries other than Pakistan, Hussain added.

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