AIRLINK 74.85 Increased By ▲ 0.56 (0.75%)
BOP 4.98 Increased By ▲ 0.03 (0.61%)
CNERGY 4.49 Increased By ▲ 0.12 (2.75%)
DFML 40.00 Increased By ▲ 1.20 (3.09%)
DGKC 86.35 Increased By ▲ 1.53 (1.8%)
FCCL 21.36 Increased By ▲ 0.15 (0.71%)
FFBL 33.85 Decreased By ▼ -0.27 (-0.79%)
FFL 9.72 Increased By ▲ 0.02 (0.21%)
GGL 10.45 Increased By ▲ 0.03 (0.29%)
HBL 112.74 Decreased By ▼ -0.26 (-0.23%)
HUBC 137.44 Increased By ▲ 1.24 (0.91%)
HUMNL 11.42 Decreased By ▼ -0.48 (-4.03%)
KEL 5.28 Increased By ▲ 0.57 (12.1%)
KOSM 4.63 Increased By ▲ 0.19 (4.28%)
MLCF 37.80 Increased By ▲ 0.15 (0.4%)
OGDC 139.50 Increased By ▲ 3.30 (2.42%)
PAEL 25.61 Increased By ▲ 0.51 (2.03%)
PIAA 20.68 Increased By ▲ 1.44 (7.48%)
PIBTL 6.80 Increased By ▲ 0.09 (1.34%)
PPL 122.20 Increased By ▲ 0.10 (0.08%)
PRL 26.58 Decreased By ▼ -0.07 (-0.26%)
PTC 14.05 Increased By ▲ 0.12 (0.86%)
SEARL 58.98 Increased By ▲ 1.76 (3.08%)
SNGP 68.95 Increased By ▲ 1.35 (2%)
SSGC 10.30 Increased By ▲ 0.05 (0.49%)
TELE 8.38 Decreased By ▼ -0.02 (-0.24%)
TPLP 11.06 Decreased By ▼ -0.07 (-0.63%)
TRG 64.19 Increased By ▲ 1.38 (2.2%)
UNITY 26.55 Increased By ▲ 0.05 (0.19%)
WTL 1.45 Increased By ▲ 0.10 (7.41%)
BR100 7,841 Increased By 30.9 (0.4%)
BR30 25,465 Increased By 315.4 (1.25%)
KSE100 75,114 Increased By 157.8 (0.21%)
KSE30 24,114 Increased By 30.8 (0.13%)

Pakistan will see its first venture capital fund denominated in local currency with Sai Venture Capital Pvt, a Lahore-based company, launching one to target the country’s tech sector and other startups, reported Bloomberg on Friday.

The Lahore-based company seeks $10 million from mainly local investors, co-founder Ahsan Jamil was quoted as saying by Bloomberg.

The co-founder informed that the upcoming fund is currently 40% committed and has received approvals from Pakistan’s securities regulator – the Securities and Exchange Commission of Pakistan – in October.

An ecosystem doesn’t “develop until you have local smart capital,” Jamil was quoted further by Bloomberg. The CEO of Sai Venture Capital believed that the participation of local investors is essential in wake of waning interest from foreign funders.

The development comes at a time when funding in Pakistan’s startup scene has dried up owing to high-interest rates and uncertainty due to the global economic outlook.

Bloomberg, citing data from Invest2Innovate, said that Pakistani startups have raised over $700 million since 2021, with a major chunk coming from international investors.

However, that momentum has since been lost.

“Its currency has gone through one of its most turbulent times and dropped by more than 40% over the same period, forcing startups to chase ‘crazy’ growth to achieve returns in US dollar terms,” Jamil said.

“In one instance, a startup had to grow 100% to keep foreign investors at breakeven,” he said.

As per Bloomberg report, Sai has made investments in companies that offer services to enterprises in developed markets as well as startups that focus on health, agriculture and education.

As per crunchbase, Sai Ventures made its most recent investment on September 19, 2023, when Truckistan, a logistics platform, raised $1 million.

Pakistan’s startup ecosystem

The progress of Pakistan’s startup landscape, which rejoiced at a record-breaking 2021, has slowly been pushed away from headlines as fundraising dropped and replaced with news of shutdowns and cut-back in operations.

During the April-June 2023 quarter, Pakistan startups attracted a meagre $5.2 million, a year-on-year decline of 95%. The amount is also 77.5% lower on a quarterly basis, indicating the massive volatility in Pakistan’s ability to attract investors.

However, in a recent interview, Pakistan’s caretaker IT minister Dr Umar Saif vowed to help the country attract funding with the launch of the ‘Pakistan Startup Fund’.

Comments

Comments are closed.