In 2023, Pakistani startups encountered a substantial funding downturn, with independent monitoring firms reporting a total of over $70 million raised—a significant drop of over 70 percent compared to the preceding two years.
This decline is attributed to both domestic and international political and economic challenges. However, there was a noteworthy recovery in the fourth quarter, where startups secured $38.6 million across 15 deals.
Alpha Beta Core (ABC) observed a remarkable 553 percent funding increase for startups in the final quarter of 2023. Notable contributions came from companies like Retailo, KraveMart, Edufi, Sehat Kahani, and Blink.
Despite the challenges, fund monitors express optimism for 2024, anticipating a revival in the startup funding market driven by political and macroeconomic clarity post the February 2024 general elections and the implementation of essential structural reforms. Analysts foresee a more promising year for local startups, expecting increased fundraising activities and renewed investor confidence in Pakistan’s startup ecosystem.
