Tech Desk 
Nov 13, 2024
In a strong start to the financial year FY2024-25, Pakistani startups raised $32 million in funding, a sign of growing investor confidence and economic stability in Pakistan.
However, with $15 million secured in the first quarter and an additional $17 million in October, local companies are seeing renewed interest from global and regional investors.
This funding milestone underscores Pakistan's emerging startup ecosystem and growing potential, making "Pakistani startups" a term to watch for investors looking to support innovation in the region.
Pakistani startups attract global and local investment in FY2024-25
According to Invest2Innovate, October was an especially active month, marked by three major deals. The co-working space COLABS raised $2 million in a Pre-Series A round led by Shorooq Partners, while Abhi, a financial services platform, secured $15 million.
Farmdar, an agritech startup, also raised an undisclosed amount in its Pre-Series A round, led by Moment Ventures.
Interestingly, only one local venture capital firm, Indus Valley Capital, invested during this period, joining Farmdar’s funding round.
Read more: Pakistan Startup Summit ends — A platform for innovation, economic boost
The month also saw significant mergers and acquisitions (M&A), with TRAX merging with Secure Logistics Group Limited (SLGL) and Trikl being acquired by Elphinstone, which signals growth and maturity in the Pakistani tech sector.
Contributing to this positive investment climate, the State Bank of Pakistan (SBP) reduced the policy rate to 15% to improve economic conditions, ease inflation, and enhance credit access.
Additionally, the Special Investment Facilitation Council (SIFC) has been promoting foreign investment and easing the business environment for startups.
At the Singapore FinTech Festival, overseas Pakistanis and international investors expressed optimism about Pakistan’s economic direction and committed to supporting high-potential startups.
