Pakistani startups failed to raise a single dollar in the first three months of calendar year 2024 amid investors’ cautious stance leading up to the General Elections on February 8, which were expected to influence market sentiment in the coming months.
2024 kicked off flat for local startups after raising just $75 million in 2023 and $315 million in 2022.
Mutaher Khan, co-founder of Data Darbar told ProPakistani,
2023 was a bad year for Pakistani startups. Factors like poor support from global venture capital, coupled with domestic GDP which slowed to just 1 percent in October-December, and high-interest rate environment killed investors’ urge to pour more money into Pakistan’s startup ecosystem.
There was one investment in Q1 2024 but the amount was undisclosed. It was like a single tranche of a big round so the raise wasn’t reported.
The primary factor contributing to the dry spell in the first quarter of 2024 was the anticipation surrounding the general elections earlier in the year. Investors adopt
ed a cautious approach, refraining from making significant investment decisions until there was clarity in the political landscape.
Compared to how 2024 has fared so far, 2023 was the best year for female-founded startups which attracted $10.5 million out of the total $75.6 million funding raised during the period.
Since the formation of the federal cabinet, there has been a notable uptick in foreign investment flows into the capital markets, amounting to $38 million from February 8th onwards.
Foreign investors also poured in $82 million in local T-Bills through Special Convertible Rupee Accounts (SCRA) in March 2024.
Source: ProPakistani