2021 was a game-changing year for the nascent Pakistani startup ecosystem, which saw a record $350 million in fundraising across 81 deals. This sum was more than what the country’s startups garnered in the previous six years combined.
However, that momentum was cut short in 2022 as the global and domestic macroeconomic uncertainty, coupled with a high interest-rate regime, slowed funding activity in the south Asian market.
To make matters worse, several prominent startups in Pakistan had to shut shop or withdraw from the market as the funding tap dried up. Pakistani delivery startup Airlift ceased operations in July, while tech-enabled transport firms Swvl and Uber and used car platforms Vava Cars and Car First withdrew from the market. Moreover, the State Bank of Pakistan revoked the in-principle approval granted to YC-backed fintech startup Tag in October.
The challenges and the bleak investment landscape notwithstanding, Pakistan-focused venture capital investors and startups believe that the country still promises a viable market potential.
Speaking during a virtual session titled ‘Pakistan’s long-term investment potential intact despite funding slowdown’ at DealStreetAsia’s Asia PE-VC Summit 2022, Zayn Capital co-founder Faisal Aftab said, “I think Pakistan was and still is an amazing bet. We’re very bullish on Pakistan in a long-term view.”
Aftab added that the Fed rate hike-induced liquidity squeeze has severely impacted Pakistan because it is a more nascent startup...
Read Full Story: https://www.dealstreetasia.com/stories/pakistan-asia-pevc-summit-312529
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