Pakistan Startup
Pakistan Startup Ecosystem – Ready to Take Off
Pakistan, the world’s fifth youngest population, with nearly two-thirds of citizens under the age of 30, and a young large pool of talent, has been slow to embrace digitization and technology. However, in recent years, Pakistan’s start-up ecosystem has made significant strides as a result of increased interest from local and international investors wanting to invest in potential start-ups.
Pakistan was recently named one of the fastest-growing economies in Asia in McKinsey & Co’s latest report on the Pakistani ecosystem; with Fintech, E-commerce, and Ed-tech attracting the majority of entrepreneurs and investor capital. The report also revealed that 720 startups had been created since 2010, with 67% of them still in operation and raising funds successfully.
There are three important factors that have fueled towards Pakistan’s startup ecosystem’s rapid worldwide emergence: An improving security situation, Rapidly expanding user connectivity, and significant legal regulatory changes and deregulations.
Other indicators point to a growth trend specifically centred on entrepreneurship. Despite the youth bulge, Pakistan has one of the fastest growing economies in Asia. By 2025, it is expected that the economy will have added 2.1 million middle-income households, ultimately resulting in a surge in demand for digital services.
The recent COVID pandemic witnessed the adoption of digital technologies throughout businesses all over the globe, with investors looking for investment in start-ups that are using technology to provide solutions for the new normal. This is seen by an increase in investment in E-Commerce, Health-tech, and Ed-tech.
For Pakistani start-ups, the COVID Pandemic proved to be a blessing in disguise. The startup ecosystem in the world’s fifth-largest country has had a breakout year in 2021, thanks to an influx of international investment with 41 deals amounting to $57.7 million being closed in 2020. 2021 continued on the blazing speed of 2020, with greater interest by international investors, with Pakistani start-ups raising roughly $375 million in the outgoing year, with funding for 2021 double the total investment received in the last six years.
Hatch entered Pakistan in 2021 to foster a thriving start-up culture by increasing opportunities for entrepreneurs to experiment with new ideas, acquire knowledge, seed funding, and up-skill their skill set to overcome local business problems. This is so that they can grow their business in Pakistan and internationally, and play a role in changing Pakistan’s fortunes for a better and prosperous future.
