BAFL 45.43 Increased By ▲ 2.67 (6.24%)
BIPL 20.86 Decreased By ▼ -0.12 (-0.57%)
BOP 5.45 Increased By ▲ 0.41 (8.13%)
CNERGY 4.60 Increased By ▲ 0.24 (5.5%)
DFML 15.75 Decreased By ▼ -0.05 (-0.32%)
DGKC 71.04 Increased By ▲ 2.40 (3.5%)
FABL 27.74 Decreased By ▼ -0.06 (-0.22%)
FCCL 17.22 Decreased By ▼ -0.08 (-0.46%)
FFL 8.68 Decreased By ▼ -0.12 (-1.36%)
GGL 13.07 Increased By ▲ 0.10 (0.77%)
HBL 114.75 Increased By ▲ 5.72 (5.25%)
HUBC 120.69 Increased By ▲ 3.45 (2.94%)
HUMNL 7.79 Decreased By ▼ -0.06 (-0.76%)
KEL 3.32 No Change ▼ 0.00 (0%)
LOTCHEM 27.91 Decreased By ▼ -0.24 (-0.85%)
MLCF 39.29 Increased By ▲ 0.09 (0.23%)
OGDC 108.98 Increased By ▲ 0.83 (0.77%)
PAEL 18.20 Decreased By ▼ -0.05 (-0.27%)
PIBTL 5.71 Decreased By ▼ -0.09 (-1.55%)
PIOC 109.76 Increased By ▲ 0.86 (0.79%)
PPL 93.27 Increased By ▲ 1.77 (1.93%)
PRL 25.47 Increased By ▲ 0.47 (1.88%)
SILK 1.06 Increased By ▲ 0.02 (1.92%)
SNGP 63.41 Increased By ▲ 1.71 (2.77%)
SSGC 12.07 Decreased By ▼ -0.12 (-0.98%)
TELE 8.61 Decreased By ▼ -0.17 (-1.94%)
TPLP 13.53 Decreased By ▼ -0.37 (-2.66%)
TRG 85.81 Increased By ▲ 1.40 (1.66%)
UNITY 25.75 Increased By ▲ 0.50 (1.98%)
WTL 1.56 Increased By ▲ 0.04 (2.63%)
BR100 6,242 Increased By 133.2 (2.18%)
BR30 21,739 Increased By 476.6 (2.24%)
KSE100 60,730 Increased By 918.9 (1.54%)
KSE30 20,240 Increased By 379.1 (1.91%)

Pakistan’s startup space has witnessed tremendous growth over the last two years. And while the country has long been hailed for beingthe fertile ground for entrepreneusrhsip ad startups because of its rising population, the youth bulge, significant English-speaking population, increasing tech savviness, and broadband and internet usage; what’s fueling the country’s emerging startup ecosystem is the burgeoning VC funding and interest. Among the startups emerging, the startups have been propelling growth while the ecommerce and finch horizontals have been captured most funding’s in the last two years.

2021 was a golden year for Pakistan’s startups where they attracted investment worth over $370 million. But just as the local startup ecosystem moved growth gears, speed breakers and global headwinds might just slow down the momentum. This is primarily because of funding opportunities drying up. Apart from the local macroeconomic instability fueled by inflation that raises costs for startups, global recession has triggered a shift in investor and VC funding appetite. This is significant in United States of America that is a major part of the VC funding received by Pakistani startups. Headlines are reading that bad times are coming for startups globally as high interest rates and recession has created credit crunch in the developed world especially the US. So drying upfunding taps in the US will have a domino effect in VC funding in countries including Pakistan. The slowdown is witnessed in Indian as well in African startups. Definitely Pakistan is next in line.

Layoffs are just the first sign of distress for early-stage startups facing an economic downturn – local or global. Besides the global wave of layoffs at startups, significant startups in Pakistan have also been seen to send their staff packing. Careem, Swvl, Truck It In, and Airlift have recently announced cut in operations and staff due to economic conditions and global capital downturn. Airlift, an ecommerce startup announced closingdown operations in South Africa as well as some cities in Pakistan. Swvl has paused its daily rides within major cities. Careem has suspended its food delivery vertical. And like Airlift and Swvl, Truck It In has also laid off around 30 percent of its employees. All this foretell a slow year of VC funding and startups growth.


Comments are closed.

Red alert for startups too?

Nepra reserves verdict on KE’s pleas for 20-year licences

Dispute settlement mechanisms: BoI asked to show ‘flexibility’

PC takes up sale of govt properties with FA

PIA divestment: PC inks ‘FASA’ with FA

NAC lowers FY23 growth rate to -0.17pc

FBR gets data of unregistered sugar buyers

UoSC/wheeling charges: Nepra reluctant to approve ‘heavy cost’

IMF team briefed about tax policy reforms

If conviction of Musharraf upheld ‘then it must be known that it will have consequences...’: SC judge

‘Wave 24’ shows 7pc improvement: OICCI unveils promising upswing in business confidence