Pakistani startups are having their moment in the sun.
Last year, a combination of investor exuberance, pandemic-induced digital adoption, an improving regulatory climate for startups, and the involvement of foreign funds drove VC funding in the country to a record high of US$350 million. That’s more than 5x the amount raised in 2020 and more than the previous six years combined.
2021 also saw bigwigs in the investment scene – including Tiger Global and Kleiner Perkins – flock to the country for the first time. Many closed deals at an unprecedented speed. “I’ve seen, on average, deals close in two weeks compared to months that we saw before,” notes Kalsoom Lakhani, co-founder of Pakistan-focused early-stage VC fund i2i Ventures.
With 25 deals inked last year, the fintech sector saw the highest number of deals made in the country, though it was ecommerce firms that took the crown in total value of funds raised, at US$211 million.
Four out of 10 of i2i Ventures’ portfolio companies are fintech firms, including CreditBook, earned wage access firm Abhi, and female-first finance platform Oraan.
Historically, financial inclusion in Pakistan has been an issue. According to the World Bank, 402 of every 1,000 people have bank accounts, which is less than half that of Bangladesh, another emerging economy. But here lies the opportunity.
For years, the high costs of getting a license and the opaque regulations around operating financial services gave incumbent banks a free pass. “When...
Read Full Story: https://www.techinasia.com/fintech-bright-spot-pakistans-breakout-year
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