Pakistani startups have secured more than $1 billion in funding over the past decade, signing 368 investment deals with venture capitalists, institutions, and other investors, according to a recent report by think tank Invest2Innovate.
The report estimates that startups in Pakistan received approximately $1.037 billion in disclosed investments since 2015. However, the actual figure could be higher due to undisclosed transactions.
Funding rounds from both local and international investors have played a crucial role in building a sustainable startup ecosystem, alongside policy initiatives from regulatory bodies and the government.
Muhammad Yasir, an analyst, noted that Pakistan’s startup landscape has faced hurdles due to political instability and macroeconomic challenges, leading some startups to shut down while others struggle to reach profitability. Inflationary pressures have weakened consumer demand, making it harder for startups to thrive and discouraging investors from entering the market.
Despite these obstacles, several Pakistani startups have managed to attract significant investor interest and achieve sustainable growth, including Bykea, Bookme, Krave Mart, PostEx, and ABHI. Among them, fintech startup ABHI stands out for its success in expanding internationally and acquiring a major stake in a foreign microfinance bank.
Invest2Innovate’s report suggests that although challenges remain, there is cautious optimism for a market recovery in late 2025, driven by improving economic conditions, lower interest rates, and increasing investor interest in Pakistan’s startup ecosystem.
Incubation centers have played a key role in supporting startups, providing essential resources, mentorship, and investment opportunities. According to Azfar Hussain, Project Director of the National Incubation Center Karachi, the network of National Incubation Centers has helped raise over Rs 31 billion in investment and generate Rs 23 billion in revenue. Over 1,500 startups across eight cities have benefited from these initiatives, establishing a strong foundation for entrepreneurship in Pakistan.
Saad Shah, CEO of Hexalyze Consulting Services, emphasized the importance of strategic partnerships, mentoring, and subsidized services from tech and financial companies to foster startup growth. He pointed out that universities and incubation centers worldwide receive funding from major tech firms, an approach that could further strengthen Pakistan’s startup environment. Notably, Hexalyze Consulting Services recently partnered with Singapore Management University to support startups in Singapore.
Invest2Innovate’s report underscores the need for continued investment, regulatory reforms, and strategic collaborations to ensure long-term growth and resilience in Pakistan’s startup ecosystem.
