Pakistan’s startup ecosystem is showing strong signs of recovery, raising $15 million across four deals in the third quarter of 2024, marking a significant 650 percent increase from the previous quarter. This resurgence comes despite a global downturn in venture capital funding, as highlighted in a recent report by Invest2Innovate.
Local startups in the Fintech and Mobility & Supply Chain Logistics sectors are leading the charge, attracting substantial investments from both local and international venture capitalists.
DealCart’s Seed Funding Success
DealCart, a social e-commerce platform revolutionizing access to essential goods for Pakistani consumers, secured $3 million in seed funding. The round was led by Shorooq Partners and Sturgeon Capital, with participation from 500 Global, Evolution VC, Rayn Capital, and Khyber Venture Partners. This funding will enable DealCart to expand its reach and offer affordable essential goods to low- and middle-income consumers across the country.
Zyp Technologies’ Green Mobility Initiative
Zyp Technologies raised $1.5 million in Series Pre-A funding, spearheaded by Shorooq Partners, to launch its electric smart mobility solutions city-wide in Lahore. Existing investor Indus Valley Capital increased its stake, joined by several angel investors. The investment will facilitate the creation of over 60 battery swap stations and the deployment of 1,000 Zyp Utility Motorcycles (ZUM 2000) over the next year. These smart motorcycles feature fleet management software with accident alerts, anti-theft capabilities, and location tracking, aligning with Pakistan’s environmental goals.
PostEx’s Expansion Plans
PostEx, a Lahore-based startup offering a hybrid model of fintech and logistics, raised $7.3 million in Pre-Series A funding. The round was led by Conjunction Capital, with contributions from Dash Ventures, Sanabil500, VSQ, FJ Labs, and Zayn VC. The funds will be used to strengthen PostEx’s market position in Pakistan and support its expansion into the GCC region.
Qist Bazaar’s Growth Strategy
Qist Bazaar, a Karachi-based “buy now, pay later” (BNPL) fintech startup, secured $3.2 million in Series A funding. The round was led by Indus Valley Capital, with participation from Gobi Partners. Bank Alfalah, which led the seed round, has also invested. The company plans to use the funds to expand its product portfolio, enhance its technology infrastructure, and scale operations across Pakistan.
The report noted that 67 percent of the funding rounds were led by international venture capitalists, reflecting growing global interest in Pakistan’s startup scene. With improving economic conditions, the final quarter of the year could see even more investment deals, the report suggested.
