Pakistani startups raise record $305 million in nine months of 2021

Staff Reporter BOL News

04th Oct, 2021. 04:48 pm

KARACHI: Pakistani start-ups are high on the global investors’ radar, as they raised a record $305 million in initial and advanced level financing from across the world in the first nine months (January-September) of 2021.

“[The] average deal size [went] up five times to $5.9 million in the first nine months (January-September) of 2021, compared with $1.2 million in 2020 with foreign participation growing massively,” Alpha Beta Core (ABC) said in a brief commentary.

As many as 52 startups have raised a total of $305 million in sectors, including transport and mobility, logistics, e-commerce, fintech, heath and freight in the first nine months of 2021.

Among the prominent ones were Airlift and Bazaar, which fetched $85 million and $30 million, respectively, in advanced level Series B and Series A fund raising, according to Arif Habib Limited.

Besides, QisstPay, TAG and Oraan got $15 million, $12 million and $3 million, respectively, in initial level seed financing.

As many as 17 startups have raised $172.6 million in the third quarter (July-September) 2021, compared with 12 new enterprises that attracted a total of $28.3 million in the same quarter last year. Accordingly, the average size of the financing has increased 4.3-times to $10.15 million/deal in July-September 2021, compared with $2.36 million in the same quarter of the last year.

“The increasing global investors’ appetite suggests Pakistan is poised to attract a minimum half a billion dollar this year (January-December 2021) and another $1 billion next year,” ABC CEO Khurram Schehzad said.

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