ISLAMABAD: Pakistan’s startup ecosystem has expanded significantly with combined enterprise value of Pakistani startups now exceeds USD 4 billion, reflecting expansion of technology ecosystem since 2020.
A new report issued on Monday revealed that Pakistan’s technology ecosystem has gradually begun attracting global attention as digital adoption expands, startup activity accelerates, and a young, tech-savvy population enters the workforce.
While the country has long been viewed as an undercapitalised market, new research suggests the foundations for a stronger innovation landscape are already taking shape. A new report examining Pakistan’s startup environment highlights the scale of this emerging opportunity, pointing to growing enterprise value, increasing founder experience, and expanding digital infrastructure as key indicators of momentum.
The report titled “The Rapid Rise of Pakistan Tech,” released by inDrive in collaboration with startup intelligence firm dealroom.co, offers a closer look at the country’s evolving technology landscape and the opportunities emerging within it. The study places Pakistan among the most promising markets within what it describes as the global “New Frontier” of startup ecosystems, while also highlighting the role that experienced operators and investors can play in accelerating this growth.
According to the report, Pakistan’s startup ecosystem has expanded significantly in recent years. The study noted that this pace of growth has outperformed several established markets, including India and technology hubs such as New York, Paris and Dubai during the same period.
Startup activity in Pakistan has also accelerated significantly over the past decade. The report notes that 121 startups emerged between 2011 and 2015, followed by 317 between 2016 and 2020, and 518 between 2021 and 2025. Key sectors driving this growth include fintech, transportation and marketing, reflecting increasing entrepreneurial activity and ecosystem maturity.
Pakistan’s potential is closely linked to the expansion of its digital infrastructure. Smartphone ownership reached roughly 68% of the population during 2023–24, while mobile broadband coverage extended to around 81%. However, active mobile internet usage remains between 23% and 29%, indicating significant room for further digital adoption and growth of platform-based services.
Despite these encouraging indicators, the report points to a significant capital gap compared with regional peers. Startup funding in Pakistan currently totals around USD57 million, including approximately USD15 million directed toward breakout-stage companies. In contrast, startup capital in India amounts to roughly USD3 billion, with about USD6 billion flowing into later-stage companies.
The report suggests that this funding gap also creates an opportunity for early investors and experienced operators to play a defining role in shaping the ecosystem’s next phase of growth. In this context, operator-led investors such as inDrive Ventures are increasingly engaging with Pakistan’s startup landscape.
One example highlighted in the study is inDrive Ventures’ investment in Pakistani quick-commerce platform Krave Mart. The partnership reflects how global operators can support local startups by providing platform expertise, logistics capabilities and operational experience, helping them scale across major urban markets.
The findings also place Pakistan within a broader global shift in innovation, where technology entrepreneurship is expanding beyond traditional startup centres. More than 70 cities across emerging ecosystems have now produced at least one USD1 billion technology company, marking a tenfold increase since 2015. These “New Frontier” ecosystems collectively attract around 11% of global venture capital, compared with less than 4% fifteen years ago, and together represent more than USD2 trillion in enterprise value.
Overall, the report suggests that Pakistan’s startup ecosystem is entering a critical phase of development. With a growing pool of founders, expanding digital connectivity and increasing engagement from global operators such as inDrive, the country is gradually building the foundations of a more mature technology ecosystem, the report added.
Copyright Business Recorder, 2026
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