Venture capital is vital for a thriving startup ecosystem.
Over the last few years, Pakistani startups have attracted a fair amount of venture capital from around the world, fuelling the startup ecosystem’s growth.
Funding for startups has steadily gone up, indicating an upward trend. And leading the charge is a group of Pakistan-focused funds, collectively managing over $200 million in investable capital.
I call these firms The Big 5.
These firms are nimble, well-respected, and leading from the front. They are investing and supporting the most promising startups in the e-commerce, transportation, fintech, and health tech sectors. They are also responsible for bringing well-known foreign investors to invest alongside them.
In 2022, they funded half of all startups. Here’s a closer look:
Zayn Capital
Zayn Capital made six disclosed investments in 2022: Truck It In, Nayapay, Bazaar, COLABS, Zaraye, and SnappRetail.
Together, these startups raised a total of $104 million.
Zayn Capital invested in three seed-stage startups, two pre-seed, and one Series B. With two investments each in fintech and e-commerce, one in transportation and one in real estate.
Most of the founders Zayn Capital funded obtained their Bachelor’s degrees in Pakistan, with many having studied at IBA. Combined, the founders averaged 9 years of work experience. Three founders are x-Careem and three x-SWVL.
Fatima Gobi Ventures
Fatima Gobi Ventures invested in six startups: Truck It In, COLABS, Abhi, Rider, DealCart, and Priceoye.
Combined, these startups raised a total of $49 million.
Fatima Gobi Ventures invested in four seed-stage startups, one pre-seed, and one Series A. One investment each in transportation, fintech, and real estate, with three in e-commerce.
Like Zayn Capital, most of the founders it funded obtained Bachelor’s degrees in Pakistan, with IBA being the common denominator. Combined, the founders averaged 9 years of experience. Three founders are x-Careem and one x-SWVL.
i2i Ventures
In 2022, i2i Ventures made six disclosed investments. It invested in Truck It In, Metric, Abhi, ezbike, Rider, and DealCart.
Together, these startups raised a total of $40 million.
i2i Ventures invested in three pre-seed startups, two seed, and one Series A. Two investments each in transportation, fintech, and e-commerce.
Like Zayn Capital and Fatima Gobi Ventures, most founders i2i Ventures funded obtained their Bachelor’s degrees in Pakistan, mostly from IBA. Combined, the founders averaged 11 years of experience. Three founders are x-Careem and one x-SWVL.
Indus Valley Capital
Indus Valley Capital made five disclosed investments in 2022. It invested in Bazaar, COLABS, Markaz, Farmdar, and Remotebase.
Combined, these startups raised a total of $79 million.
Indus Valley Capital invested in three seed-stage startups, one Pre-Series A, and one Series B. Three investments in e-commerce, one in HR Tech and one in AgTech.
Half of the founders obtained their Bachelor’s degrees within Pakistan, and half outside. Within Pakistan, two founders attended LUMS. Combined, the founders averaged 10 years of experience.
Sarmayacar
Sarmayacar made five disclosed investments in 2022. It invested in Oladoc, Jugnu, Abhi, Bykea, and OneLoad.
Together, these startups raised a total of $62 million.
Sarmayacar invested in three Series A startups, one Pre-Series A, and one Series B. Two investments in FinTech, one each in e-commerce, transportation, and health tech.
The majority of the founders obtained their Bachelor’s degrees in Pakistan. Three worked at Unilever, and two worked at Morgan Stanley. Combined, the founders averaged 13 years of experience.
End note
The startup ecosystem in Pakistan is rapidly growing with the help of venture capital firms, particularly The Big 5.
The Big 5 are interested in funding startups that are going after big markets and have founders with operational experience.
Despite some challenges in 2022, these firms remain dedicated to driving the growth of the Pakistani startup ecosystem and helping the country’s most promising startups reach new heights.
Criteria: Active VC or Angel-funded startups founded by a Pakistani and headquartered in Pakistan with the majority of employees and at least one founder in Pakistan and a product created for the global and Pakistani market. If not headquartered in Pakistan, the majority of employees and at least one founder is in Pakistan. It does not include rounds with funding amounts less than $250,000.
*Please note that some of the above-mentioned VC firms made investments outside Pakistan during the year. These investments are not covered.
