According to statistics published by data analytics company Magnitt, Pakistan’s startups received a pitiful $3 million in funding in the first half of 2024—a staggering 92% decrease year over year.
The reduction in startup investment in Pakistan was the largest decline in Magnitt’s covered developing countries, according to the research titled “H1 2024 Emerging Venture Markets Venture Investment.”
The Middle East, Africa, Pakistan, Turkiye, and South East Asia are considered Emerging Venture Markets (EVM). In H1 2024, EVM financing was $3.469 billion, a 34% reduction from H1 2023.
According to the study, “the number of deals also fell across EVMs, with a total of 618 deals, representing a 34% YoY decrease,” and 51 fewer exits were made.
With 128 agreements totaling $1.097 billion in investment, fintech emerged as the top industry. Singapore dominated the area with 38% of the money, the report continued.
In the meantime, Pakistani companies only secured five transactions throughout the six-month period—a notable 77% decrease from the same period previous year.
According to the report, South East Asia (SEA) received $2,209 million in financing, which was 31% less than in H1 2023 but still accounted for 64% of all H1 2024 EVM investment. With 235 agreements, this area again had the most deal activity.
The investment acquired by the Middle East, Pakistan, and Turkiye (MEPT) areas was $665M in total, indicating an 18% YoY fall. Additionally, their transaction count decreased by 14%, which was the lowest decline among all regions.
The meager $75.6 million that Pakistan’s startups had raised in 2023 was 77.2% less than the previous year. Experts attributed this sharp decline to the “normalizing” of the scenario, which was characterized by high interest rates and a tight-lipped global climate that hindered fund-raising efforts.
This is a far cry from 2021, when Pakistani entrepreneurs raised a record amount and then had an even more successful 12 months the following year.
