During Q3 2021, Pakistani startups raised $172 million in disclosed funding across sixteen deals.
Compared to the 3rd quarter of 2020, it’s an increase of 853% from $18 million. And, compared to the 2nd quarter of 2021, it is an increase of 111% from $81 million.
Deals were also up 78% YoY and 14% over the previous quarter.
![Q3 Pakistani Startup Funding Up 853% YoY to $172 million Q3 Pakistani Startup Funding Up 853% YoY to $172 million](https://techshaw.com/wp-content/uploads/2021/10/Q3-Quarterly-Funding-and-Deals-1024x576.png)
Q3 2021 Pakistani Startup Funding
Pakistani startups started off 2021 on a high note. About $20 million was raised by ten startups in Q1.
The momentum continued in Q2 with Pakistani startups raising $81 million in disclosed funding. Also, startup funding exceeded $50 million for the first time ever in a single quarter.
That is until Q3. It’s hard to explain what happened in Q3. Quite simply, it’s mind-blowing.
Celebrity VCs made their first investments. The Seed round became the Mango Seed. The valuations soared. Finding talent became a challenge. And founders and stakeholders gained airtime on international and national media.
This resulted in a bumper quarter.
Pakistani startups raised a record $172 million in Q3. This is the best quarter since I started keeping track in 2013. There was more money raised in Q3 than in any of the previous seven years combined; 2014-2020.
It’s Bananas. And Mangoes.
To date, Pakistani startups have raised approximately $273 million in disclosed funding. Again, this is a record in comparison to 2020, when the previous record was set with $59 million.
![Q3 Pakistani Startup Funding Up 853% YoY to $172 million Q3 Pakistani Startup Funding Up 853% YoY to $172 million](https://techshaw.com/wp-content/uploads/2021/10/YTD-Deals-and-Amount-1024x576.png)
Let’s do the numbers.
$600,000
Trukkr, the Karachi-based freight marketplace startup, raised $600,000 in Seed funding from Anchorless and Kinnow VC.
$2,000,000
DigiKhata, the Faisalabad-based small business accounting startup, raised $2 million in Seed funding from MSA Capital, Shorooq Partners, SOSV, and +92 Ventures.
$3,500,000
Dastgyr, the Karachi-based B2B e-commerce marketplace startup, raised $3.5 million in Seed funding from SOSV, ADB Ventures, Seedstars, Edgebrook Partners, Zayani Venture Capital, and Tricap investments.
$1,000,000
Marham, the Lahore-based HealthTech marketplace startup, raised $1 million in Seed funding from Indus Valley Capital.
$85,000,000
Airlift, the Lahore-based transportation, and logistics startup raised $85 million in Series B funding from 20 VC, Buckley Ventures, Quiet Capital, and Indus Valley Capital. This latest round of funding brings Airlift’s total funding to $109.2 million, making it the most well-funded startup in Pakistan.
$30,000,000
Bazaar, the Karachi-based B2B e-commerce marketplace startup, raised $30 million in Series A funding from Defy Partners, Wavemaker Partners, Acrew Capital, Saison Capital, Zayn Capital, B&Y Venture Partners, Indus Valley Capital, Global Founders Capital, Next Billion Ventures, and Alter Global. This brings Bazaar’s total funding to $37.8 million, making it the 2nd most well-funded startup in Pakistan.
$2,700,000
Walee, the Islamabad-based AdTech startup in the influencer marketing space, raised $2.7 million in Seed funding from Z2C.
$125,000
Abhi, the Karachi-based FinTech startup, raised $125,000 in Seed funding from Y Combinator and graduated from their Summer 2021 batch.
$12,125,000
TAG, the Islamabad-based FinTech startup, raised $125,000 in Seed funding from Y Combinator and graduated from their Summer 2021 batch. Later, it raised $12 million in Seed funding from Liberty City Ventures, Canaan Partners, Addition, Mantis, Fatima Gobi Ventures, and Banana Capital.
Earlier this year, TAG raised $5.5 million in Seed funding. After the latest round of funding, the total funding of TAG stands at $17.6 million, making it one of Pakistan’s most well-funded FinTech startups.
$3,000,000
Truck It In, the Karachi-based freight marketplace startup, raised an additional $3 million in Pre-Seed funding to close its Pre-Seed round of $1.5 million it raised in Q2. It added Picus Capital and Zayn Capital as two new investors. It has now raised a total of $4.5 million in funding.
$1,600,000
Ailaaj, the Lahore-based HealthTech marketplace startup, raised $1.6 million in Seed funding from JS Group, Fazal Din Group, and Leonine Tech Ventures.
$10,000,000
Bridgelinx, the Lahore-based freight marketplace startup, raised $10 million in Seed funding from 20 VC, Buckley Ventures, Indus Valley Capital, Wavemaker Partners, Quiet Capital, TrueSight Ventures, Soma Capital, Flexport, and UNTITLED.
$2,100,000
Maqsad, the Karachi-based EdTech startup, raised $2.1 million in Pre-Seed funding from Indus Valley Capital, Alter Global, and Fatima Gobi Ventures.
$3,000,000
Oraan, the Karachi-based FinTech startup in the personal credit space, raised $3 million in Seed funding from Zayn Capital, Resolution Ventures, i2i Ventures, Hustle Fund, Haitou Global, and Wavemaker Partners.
$15,000,000
Qisstpay, the Islamabad-based FinTech startup in the buy-now-pay-later space, raised $15 million in Seed* funding from MSA Capital, Global Founders Capital, Fox Ventures, First Check Ventures, and United Bank Limited.
*The round was a mixture of pre-seed, seed, and debt. Because details are not available, I am calling it Seed for simplicity’s sake.
Some of the amounts in the description are rounded for simplicity. You can find the exact amounts here.
Acquisitions
Abwaab, the Jordan-based EdTech startup, acquired Pakistan-based Edmatrix – a social learning platform – for an undisclosed amount.
TruKKer, the U.A.E-based digital freight marketplace, acquired Pakistan-based TruckSher – the local digital freight marketplace – for an undisclosed amount.
This list includes VC or Angel funded active startups that have publicly disclosed their funding using credible media outlets and:
- founded or co-founded by a Pakistani and headquartered in Pakistan and or having majority of operations or employees or founders/co-founders in Pakistan.
- founded by non-Pakistani but based, operated and or for the Pakistani market.
- founded or co-founded by a Pakistani, having a HQ in different country but the leadership and majority of the team in Pakistan.
Mango Seed
Mango Seed is a term used to describe large seed rounds. The debate was between Avocado and Mango. Mango won because it flows, 2 syllables and it tastes better. Sindhri anyone?
Venture capital is evolving rapidly. And Mango Seeds have become a norm in the past 2-3 years.
VCs around the world are raising ever-larger Seed funds. Greylock, for instance, announced a $500 million Seed fund on the heels of Andreessen Horowitz’s $400 million Seed fund announced last month.
That’s $900 million just competing to write the first check. Intensifying the race to get in early results in a Seed round that rivals Series A in size.
But that’s just a couple of Silicon Valley VC firms. Where does Pakistan fit in?
In Pakistan, foreign venture capital firms dominate Seed-stage funding. Although they don’t have a Pakistan-specific fund, all of them have regional Seed or Growth funds. As they examine the region and compare it to the bustling startup ecosystem in India, they hope one-day Pakistani startups will reach the same scale and their investments will result in outsized returns.
And the data shows that they do not mind writing large Seed checks.
![Q3 Pakistani Startup Funding Up 853% YoY to $172 million Q3 Pakistani Startup Funding Up 853% YoY to $172 million](https://techshaw.com/wp-content/uploads/2021/10/2017-2021-Seed-Funding-Mango-Seed-Rounds-1024x576.png)
In 2020, the average Seed round was $761,000 (median $250K) whereas in 2021, it increased to $3.6 million (median $2 million). The average Seed round has increased 368% year-to-date compared to 2020.
In just Q3 of this year, BridgeLinx, TAG, and QisstPay announced $10+ million Seed rounds. That used to be a typical Series A in Pakistan and in some cases (Bykea 2020) Series B.
Oh times, they are changin’.
There’s a lot that goes into building a startup ecosystem. The seeds from yesteryears are starting to bear fruit. The grit of founders, relentless enthusiasm of stakeholders, and the ever-increasing risk appetite of investors is in full force.
P.S. Thank you Zubair Naeem Paracha for reviewing the list of startups for this post.