Startup Funding in Pakistan Suffers Massive Fall To Lowest Level Since 2020
According to the latest data released by Data Darbar, Startup funding in Pakistan had its worst quarter since 2020. The reports claim that the investments in this category dropped to $5.2 million during April-June 2023. It clearly reflects a 95% year-on-year (YoY) and 77.5% quarter-on-quarter (QoQ) decrease from $104.1 million and $23.1 million, respectively. In addition to that, the deal count was also eight, down 65.2% YoY.
just for your information, the total funding was approximately $28.3 million in the first half of 2023. It turns out to be a 60% decrease from the same period last year. The decline was far greater at 98%, compared to the $276.9 million raised in the first half of 2022.
Startup Funding in Pakistan Shrinks by 95%
The point worth mentioning here is that fundraising has been down globally, especially in Asia, where venture capital investments have dropped below pre-COVID levels. The global data for the most recent quarter has yet to be announced, reports claim that global startup funding declined 44% YoY to $22 billion in May 2023.
The average deal size declined to $743,000 in Q2 2023, down from $4.7 million the previous year and the lowest since Q1 2019. The median value was $500,000. It is the lowest since January-March of 2021. As a result, the size-to-median gap has reduced to its lowest level of $243,000. Most movements were at an early phase, with four seed rounds and three accelerator rounds. The point worth mentioning here is that only Abhi’s deal with BlueEx was technically categorized as post-IPO. On the other hand, Fintech was declared the most dominating sector in Pakistan as it accounted for half or $4 million of the declared investments.
The number of transactions dropped to 16, from 26 in July-December and 46 in January-June of last year. It was among the lowest levels by amount since 2HCY20 and the joint lowest by the number of deals since 2HCY19.
Also Read: Realme GT Neo 6 To Boast Snapdragon 8 Gen 2: Confirmed – (phoneworld.com.pk)
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