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Various startup fund monitors in Pakistan report different statistics for 2023
KARACHI: Pakistani startups raised more than $70 million in 2023, a significant drop of more than 70 percent compared to the large capital inflows of the previous two years, an independent monitoring firm said. Arab News reported.
Local startups secured about $360 million in 2021 and $350 million the following year, but suffered a funding slump toward the end of 2022.
Various startup funding monitors in Pakistan have reported different statistics for 2023, with the numbers ranging from $71.5 million to $75.6 million. These companies attribute the investment downturn to political and economic challenges at the national and international level.
Data Darbar, a website that tracks investment flows, reported that local startups raised half of their 2023 total in the fourth quarter alone, generating $38.6 million across 15 deals.
Start-up financial advisory firm Alpha Beta Core (ABC) says funding for these companies has rebounded significantly, increasing by 553 percent on a quarterly basis in the final three months of 2023 after a drought at the beginning of the year. He noted that he had witnessed a sharp increase in the number of cases.
“12 startups disclosed funding rounds in the fourth quarter of 2023, with Retailo in particular securing a $15 million Series A round to expand its operations in Saudi Arabia,” ABC said in a report this week. Stated.
These rounds collectively raised more than $38.7 million, accounting for 53 percent of total funding in 2023, and instilling new confidence in the country’s startup world.
Other notable rounds in the fourth quarter were KraveMart, Edufi, Sehat Kahani, and Blink, which raised $6.25 million, $6.1 million, $2.7 million, and $2.1 million, respectively.
Invest2Innovate (I2I), another organization that tracks fundraising, estimated the cumulative inflow at $74 million, adding that it was raised through 38 deals.
“Investment activity was slower in 2023 compared to 2022,” I2I said in a fundraising insight released Thursday.
While the first half of the year was characterized by macroeconomic uncertainty, the fourth quarter saw a significant increase in fundraising activity, with both the amount raised and the number of deals increasing by 15% compared to the same quarter in 2022. Increased.
Pakistan’s Funding Monitor is optimistic about 2024, predicting it will be a more promising year for local startups.
“The start-up capital market in 2024 will be affected by political and We expect it to gain momentum with macro clarity,” said Sarwat Khan, investment analyst at ABC.
Kulsom Lakhani, co-founder and general partner of i2i Ventures, had a similar assessment.
“We finished the year on a high note with a better outlook for 2024,” she said. “We’re going to see even more businesses holding fundraisers in the new year.”
Local startup monitors noted that Pakistan’s ongoing economic recovery and election announcements are restoring investor confidence, which is expected to boost the country’s startup ecosystem.
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