Continuing the momentum of the previous year, Pakistan’s startup sector remained booming during the first quarter of 2022, raising a substantial $163 million, according to a Deal Flow Tracker from Invest2Innovate (i2i).
Data shows the total is just under half of the total amount raised in 2021, which was a banner year for Pakistani startups.
In the three months of 2022 (January-March), a total of $163 million was raised across 15 deals. From 2015 to 2022 year to date, Pakistani startups have now raised a total of $728 million across 272 deals.
“Many of these amounts came from large seed rounds and Series B funding, and are an indication of trends of how 2022 will quickly surpass Pakistan’s 2021 year-end figure,” the report said.
During the quarter, coworking spaces including Daftarkhwan and COLABS raised capital. COLABS raised $3 million, while the amount for Daftarkhwan was not disclosed.
Mixed deals including both local and international investors still made up the bulk of capital raised ($122 million). International transactions accounted for $36 million, while local transactions amounted to $850,000.
Of the 4 purely local offerings, two were in the pre-seed stage, one in the seed stage and one in the pre-Series A, according to the data.
Bazaar raised $70 million, making it the biggest deal in the first quarter of 2022. Interestingly, Bazaar first raised capital in 2020, when Pakistani startups had amassed $65 million. This was followed by retailo, which raised $36m in a Series A round, and Jugnu which attracted $22.5m in Series A funding.
E-commerce transactions accounted for 60% of all capital raised this quarter ($202 million), but only 31% of all transactions. Fintech deals accounted for 27% of all capital raised this quarter, or $17 million, while accounting for 30% of the number of deals. Meanwhile, trucking and logistics startups have raised $13 million.
The startup sector in Pakistan had the best year in 2021, with 81 deals worth $350 million. The amount raised was more than 5 times greater than what was raised in 2020, i.e. $65 million.