Caretaker Minister for IT and Telecommunications, Dr. Umar Saif, unveiled a positive initiative of establishing a venture capital fund to support the startups.

As per the recent report released by MAGNITT, the largest community for startups across the MENA region, titled as 2021 Emerging Venture Markets Report, predicts that Pakistan will experience tremendous growth in startup funding in the year 2021.

According to the impressive statistics mentioned in the report states that, with a 45% increased deal flow and a 97% increase in funding, Pakistan observed a record level of investments in 2020 comparatively to 2019, as it can be proven by the recent achievements that have been increased due to escalating interest from local, regional as well as international players in its Pakistani startups.

Moreover, the report informs, Venture Capital funding in Pakistan was up 97% to USD77 million. Whereas, the total number of deals reached a new record at 48 transactions in 2020 up 45% from 2019. The year 2020 saw a record high level of VC funding for Pakistan when excluding the USD89mn CarFirst round in 2018 – 45% of funding came from a $22M Series A raised by Airlift Technologies and $13M Series B raised by Byke.

As per the predictions of the report, as Pakistan has crossed 100M broadband subscribers, this trend is to escalate more in 2021. 

If speaking in terms of sectors that achieved the most funding, then the transport industry scored the most and secured the top position, referring to the success gained by Airlift and Bykea, as it overtook e-commerce and accounted for 28% of the total capital invested in Pakistan.

Although, e-commerce did come on the top position on the leaderboard in terms of the number of deals signed as it accounted for 33% of the total number of deals signed between 2019 and 2020, followed by the fintech sector’s 11% share.

Source: TechJuice

Image Source: Pakistan Ka Khudahafiz

Read more: MoITT commences the formulation of Digital Pakistan Policy 2021


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