Pakistan’s IT and IT-enabled services sector recorded $2.97 billion in export inflows during July to February FY2026, marking a 19.6% year-on-year increase. However, a steady drop in monthly receipts over the past two months has tempered expectations around the government’s $5 billion annual target.

IT Exports Hit $2.97 Billion in July to February FY2026

According to data from the State Bank of Pakistan (SBP), Pakistan’s ICT export earnings grew by 19.78% year-on-year, reaching $2.61 billion in the first seven months of the current fiscal year ending June 2026, up from $2.18 billion during the same period last year. Cumulative inflows reached $2.97 billion by the end of February 2026, compared with $2.48 billion in the same period of FY2025.

IT exports now account for over 10.8% of Pakistan’s total exports. This is considered a historic milestone, reflecting the country’s gradual economic shift from traditional goods like textiles and rice toward high-value digital services.

Monthly Receipts Show a Two-Month Decline

Despite the cumulative growth, monthly figures reveal a softening trend. The sector peaked at $437 million in December 2025, before declining to $374 million in January 2026 and $365 million in February 2026, a drop of over 16% in just two months.

Analysts project exports to grow 18 to 20% in FY2026, which could bring the total to around $4.5 billion. This figure still falls short of the ambitious $5 billion target set under the government’s national economic plan, Uraan Pakistan. At the current monthly run rate of approximately $365 million, full-year IT exports are likely to plateau around $4.4 to $4.5 billion.

Geopolitical and Regional Pressures Add Uncertainty

The slowdown in monthly inflows is partly attributed to broader global uncertainty. Ongoing regional tensions have prompted clients, particularly across the US and GCC markets, to delay digital transformation and expansion projects. This has reduced near-term order flow for Pakistani IT firms.

The growing tendency of international companies to outsource software development, cybersecurity, and digital transformation projects has boosted Pakistan’s profile as an affordable IT services provider. Even so, regional instability continues to introduce uncertainty into forward planning for many of these engagements.

Beyond export figures, Pakistan’s broader startup ecosystem reflects a market in a phase of cautious maturation, with genuine momentum tempered by structural funding constraints.

Ecosystem Value Surpasses $4 Billion

Pakistan’s venture capital-backed startups have surpassed a combined enterprise value of $4 billion, up 3.6 times since 2020, according to the January 2026 Pakistan Tech Report by Dealroom.co and inDrive. The growth rate outpaces larger ecosystems including India, New York, Paris, and Dubai, placing Pakistan among emerging “New Frontier” tech markets.

The country now hosts over 170 VC-backed startups, with roughly 17 “breakouts” that have raised between $15 million and $100 million, two scale-ups that have crossed $100 million in funding, and 13 “Colts” generating between $25 million and $100 million in annual revenue.

According to TechList Pakistan, which tracks startup funding activity across the country, deal flow in early-stage rounds, particularly pre-seed and seed, has remained consistent through Q1 2026. Fintech, healthtech, and B2B SaaS have emerged as the three most active verticals during this period.

Startup Funding Rebounds in 2025

Pakistani startups secured over $74.23 million in equity and hybrid financing in 2025, spanning pre-seed, seed, and Series A rounds across fintech, mobility, healthtech, and other sectors. According to Data Darbar, local startups raised about $36.6 million in equity across 10 disclosed rounds, a modest increase from $22.5 million the previous year, though deal volume slipped slightly from 15 to 14 transactions.

Fintech and Healthtech Lead Investment Activity

The fintech sector continues to dominate investment activity, with startups such as Haball and Metric securing sizeable Pre-Series A and seed funding rounds. Analysts say fintech’s appeal lies in its ability to integrate with banking infrastructure, simplify payments, and tap into an underserved market of SMEs and digital consumers.

Haball secured a $52 million Pre-Series A funding round led by Zayn VC and backed by Meezan Bank. The company has scaled its platform to handle over $3 billion in payments, disbursing more than $110 million in financing while supporting thousands of SMEs and multinational clients.

Healthtech is emerging as the second major growth engine. MedIQ’s $6 million Series A and Xylexa’s $1 million seed round highlight strong investor appetite for solutions that address healthcare accessibility, a critical need in a country of over 240 million people.

No Unicorns Yet: The Capital Gap Remains

Despite the momentum, no Pakistani startup has yet reached unicorn status or surpassed $100 million in annual revenue. Limited domestic capital is widely identified as the primary bottleneck holding the ecosystem back from the next level of scale.
Globally, venture capital investment reached $512.6 billion in 2025, up 30.8% from 2024, with artificial intelligence alone accounting for $270.2 billion. For Pakistan, these global trends highlight the structural challenge of competing in capital-intensive sectors like AI without matching infrastructure or investment scale.

Female-Founded Startups Gain Ground

One of 2025’s notable trends is the rise of female-led startups, which raised $8.8 million in disclosed equity, accounting for more than 24% of total funding. Startups including Shadiyana, BusCaro, Metric, MedIQ, and Lean Outset were among the female-founded or co-founded ventures contributing to this shift. TechList Pakistan has closely documented this trend through its founder coverage and funding trackers.

Policy Reforms Supporting Export Growth

The State Bank of Pakistan raised the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts (ESFCA) from 35% to 50%. This allows IT exporters to retain a larger share of their dollar earnings, a reform that has provided greater liquidity for companies reinvesting in global operations.

Pakistan’s 5G spectrum auction, conducted in March 2026, is expected to unlock new product categories in healthtech, edtech, IoT, and industrial automation that have remained structurally inaccessible on existing infrastructure. Building quality talent, empowering grassroots entrepreneurship, and accelerating local AI adoption are identified as the three pillars needed to position Pakistan as a competitive global IT export hub.

Long-Term Target: $10 Billion by 2029

National long-term targets foresee $10 billion in annual IT exports by 2029, a goal that requires a significant acceleration from the current growth trajectory. IT exports now constitute over 40% of Pakistan’s total services exports, supporting foreign exchange stability, high-value employment, and entrepreneurship. This cements the sector as a core pillar of Pakistan’s broader economic strategy.

Closing the gap between the current pace and the $5 billion FY2026 target will require reversing the recent monthly decline, broadening client geographies beyond the US and Gulf, and continuing to scale startups into globally competitive businesses. The structural groundwork is being laid, but sustained execution remains the sector’s defining test going forward.

Sources: State Bank of Pakistan (SBP), Ministry of Information Technology and Telecommunication, Data Darbar, Dealroom.co / inDrive Pakistan Tech Report (January 2026), Topline Research, Pakistan Software Houses Association (P@SHA), TechList Pakistan.

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The popular YouTube creator launches his first tech venture, unifying six premium AI models into one affordable platform for users worldwide.

Dhruv Rathee, the Indian YouTuber known for simplifying politics, economics, and technology for millions, has officially stepped into the startup world with the launch of AI Fiesta. This subscription-based platform offers global users access to six of the world’s most advanced AI models under one roof—at a fraction of the cost of subscribing individually.

Who Is Dhruv Rathee?

Dhruv Rathee is no stranger to breaking down complex topics. With over 36 million subscribers across his channels and billions of views, he has become one of India’s most recognizable digital voices. Based in Berlin, Germany, Rathee holds a degree in mechanical engineering and renewable energy from Karlsruhe Institute of Technology. His influence extends far beyond YouTube, often shaping conversations on governance, climate change, and digital transformation.

How the Idea Came to Life

In his launch video, Rathee revealed that AI Fiesta was born from personal frustration. While working on his fact-check-driven content, he relied on multiple AI tools—ChatGPT, Claude, Gemini, and others—spending nearly $200 each month to cover different needs.

Yet, even after paying, he found fragmentation, token limits, and inefficiencies frustrating. Meanwhile, most of his own students in AI courses were stuck on free versions, missing out on the real potential of advanced models.

“I realized most people never experience AI’s full capabilities because of cost and complexity,” Rathee explained. “That’s when the idea of bringing all major AI tools together, at an affordable price, clicked.”

What AI Fiesta Offers

AI Fiesta is positioned as a unified AI hub, simplifying access while keeping costs low.

• Six AI Models: ChatGPT, Gemini, Claude, Grok, Perplexity, DeepSeek.

• Side-by-Side Comparison: Users can compare outputs instantly across models.

• Prompt Enhancement: Auto-refines user prompts for smarter answers.

• Custom Assistants: Build personal AIs like a study coach, chef, or project planner.

• Multimodal Tools: Image generation, editing, and multilingual voice-to-text transcription.

• Learning Community: 3,000+ prompt library, exclusive webinars, and access to Rathee’s AI user community.

Pricing – Global & India

AI Fiesta is designed for global reach but India-first accessibility.

• Global Plans:

  • $12 / month

  • $120 / year (save 17%)

• India Plans:

  • ₹999 / month

  • ₹833 / month (annual plan)

  • Supports UPI payments and will soon roll out regional language features (Hindi, Bengali, Tamil, Telugu, Kannada).

Subscriptions include 400,000 tokens/month, quarterly webinars with Rathee, and access to community resources.

Reception & Skepticism

The launch has sparked debate online. On Reddit, some praised the affordability compared to individual AI subscriptions:

“This is Dhruv’s startup… paid versions, price is very low.”

Others, however, questioned whether the model can truly sustain itself:

“Another influencer business in the name of AI. Nothing but making idiots of followers.”

The reactions highlight the challenge Rathee faces: convincing skeptics that AI Fiesta is more than an influencer-backed side hustle, but a serious tool democratizing AI.

Why This Matters

• Democratizing AI: AI Fiesta lowers cost barriers, making advanced AI accessible to students, professionals, and creators worldwide.

• India-First, Global Vision: While global in scope, India’s massive digital population is at the heart of the rollout. UPI integration and local languages signal clear localization.

• Influencer-to-Entrepreneur Shift: Rathee represents a new wave of creators who are leveraging their platforms to build real tech solutions.

• Transparency Promise: The startup plans monthly updates, quarterly webinars, and rapid adoption of new models like ChatGPT-5.

With AI Fiesta, Dhruv Rathee isn’t just entering the AI market—he’s attempting to reshape how people, especially in cost-sensitive regions, interact with artificial intelligence. Whether the platform can balance affordability with quality remains to be seen, but Rathee’s influence and community-first approach may give him a unique edge in making AI truly mainstream.

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In a landmark moment for Pakistan’s startup ecosystem, Myco, the country’s fastest-growing video streaming platform, has clinched the top spot in Season 9 of Meet the Drapers — a global startup reality show hosted by legendary Silicon Valley investor Tim Draper.

The win comes with a Rs420 million ($1.5 million) package — comprising $500,000 in equity investment and a $1 million SaaS services contract — making it the highest outcome achieved by any startup in the season.

This marks the first time a Pakistani-origin startup not only reached the finale but also emerged as the leading winner in the show’s history. Myco was selected from over 2,000 startups worldwide.

From Pakistan to the World Stage

The journey began when Paklaunch founder Aly Fahd convinced Tim Draper to dedicate an episode to Pakistani startups in October 2024 — a first in the show’s nine-season run. Out of multiple local contenders, Myco stood out, progressing through the semi-finals as the most-voted global startup and a fan favorite.

The finale was filmed in California in April 2025, followed by an intensive due diligence process. The deal was finalized in July 2025.

A Silicon Valley Endorsement

Tim Draper — known for early bets on Tesla, SpaceX, Skype, Coinbase, and Baidu — praised Myco’s innovative blend of storytelling, sports, and Web3 economics, calling it “the future of streaming.”

“Myco is one of the top Pakistani startups that PakLaunch has enabled within our network over the past three years,” said Aly Fahd. “This achievement proves the quality of Pakistani entrepreneurs on the global stage.”

Myco’s Rise and Reach

Founded in the UAE in 2021 by Umair Masoom, Myco has rapidly grown into a 20 million-user platform in just 18 months in Pakistan alone.

The platform offers more than cricket — although it holds rights to ICC events, PCB, PSL, and English Premier League — expanding into sports like MMA, Karate Combat, Padel, Squash, and Volleyball, alongside university and local tournaments.

Key Stats:

• 20M+ users in Pakistan within 18 months

• 100M+ monthly video impressions

• Active users in 100+ countries including UAE, KSA, Egypt, and North America

• Backed by Aptos Labs for its Web3 wallet and reward token system

• Targeting 50M+ users by end of 2025

Next Steps

With the new funding and SaaS deal, Myco plans aggressive expansion into North America, MENA, and South Asia, deepen its sports partnerships, launch its Watch & Earn rewards token, and form fintech alliances to drive creator and user monetization.

About PakLaunch

Founded in 2020 by Aly Fahd, PakLaunch is a global community of 350,000+ members in over 30 countries, connecting the Pakistani diaspora with local startups, investors, and global markets. It runs events such as the Paklaunch Unconference and digital accelerator programs.

About Myco

Myco is a Web3-powered video streaming and sports media platform combining premium sports rights, entertainment, and creator monetization. Its Watch & Earn ecosystem rewards users for their attention, bridging the gap between content consumption and real-world value.

Following its Meet the Drapers victory, Myco is positioning itself to become the world’s leading Web3 entertainment super app — where content meets commerce.

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Shark Tank, the globally acclaimed business reality show, is making its debut in Pakistan, offering a dynamic platform for entrepreneurs to present their business ideas to a panel of successful investors, known as “sharks,” who can provide both mentorship and financial support. The official registration portal for Shark Tank Pakistan is now live, inviting aspiring business owners from across the nation to take part.

The show has officially kicked off its audition phase, generating significant excitement among entrepreneurs throughout the country. The entry portal was open from July 8th to August 5th, during which over 1,000 innovative business ideas were submitted, showcasing the remarkable talent within Pakistan’s entrepreneurial community. Rizwan Siddiqui, Co-Founder of Greenlit Studios, noted that the quality of submissions exceeded expectations, highlighting the creativity and potential of the participants.

Auditions are now underway in partnership with LMKT at the National Incubation Center (NIC) in Karachi, running from August 12th to August 20th. During this crucial phase, selected entrepreneurs will have the chance to pitch their ideas directly to a panel of judges, with the opportunity to secure investment and mentorship from industry leaders.

The anticipation surrounding Shark Tank Pakistan’s inaugural season is high, as entrepreneurs and viewers alike look forward to discovering groundbreaking ideas and inspiring success stories. The show aims to provide a platform for promising startups to gain visibility and support, helping to turn innovative business concepts into thriving enterprises.

As auditions continue, Shark Tank Pakistan is capturing widespread attention, underscoring the growing enthusiasm for entrepreneurship and the vibrant startup ecosystem in Pakistan. The show’s dedication to fostering local talent is expected to create new opportunities and drive entrepreneurial growth across the country.

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Google has announced the launch of its new AI Academy, designed to accelerate the growth of artificial intelligence startups in Pakistan and the broader Asia-Pacific (APAC) region. The announcement was made through a press release on Monday.

New AI Academy to Drive Cross-Border Innovations

The AI Academy aims to foster new cross-border innovations and partnerships, promoting the exchange of ideas, expertise, and resources to expedite AI solution development. Google’s PR agency emphasized that this initiative will position the APAC region as a global hub for AI advancement.

Google for Startups Launches AI Academy Program

“Google for Startups has introduced a new program called AI Academy to help accelerate the growth of artificial intelligence startups in Pakistan and the APAC region,” the press release stated. Initially, the program will support over 20 startups focused on AI technologies.

Personalized Guidance and Substantial Cloud Credits for Participants

Participants in the AI Academy will receive individual guidance from Google’s global AI experts. Each startup will also be eligible for up to $350,000 in Google Cloud Credit to aid AI development and experimentation. The program includes opportunities for networking and collaboration with other AI startups across the region.

Fast-Tracking Startups to Market

The AI Academy is structured to fast-track startups to market, enabling them to develop proof of concept and product roadmaps, thereby swiftly validating their AI solutions. This accelerated process aims to expedite their path to success and demonstrate the tangible value of their innovations in the AI sector.

Significance for Pakistan’s AI Ecosystem

Google Pakistan Country Director, Farhan S. Qureshi, highlighted the importance of this initiative for the local market. “With Pakistan being an important market, we hope that local startup companies will take advantage of this opportunity to improve their AI solutions and further strengthen the AI ecosystem in the Asia-Pacific region,” he said.

Application Deadline for Google AI Academy Program

Applications for the AI Academy program are open until August 16, providing a crucial opportunity for Pakistani startups to join a regional push towards advanced AI development.

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The rise of startups in Pakistan brought hope for innovation and economic growth. However, many promising ventures have shut down. What causes these failures? We will explore the downfall of 4 notable Pakistani startups. By examining their journeys, we will discuss common pitfalls and valuable lessons for future entrepreneurs. Dive into the challenges and insights behind these closures.

4 Pakistani Startups That Failed

In Pakistan, numerous ventures started and thrived, only to eventually fail. The reasons behind their failure included a lack of funds and poor allocation, lack of transparency between founders and investors, poor business and revenue models, inaccurate forecasts, weak supply chains, and much more.

Here are top 4 startup failure stories. They provide lessons to entrepreneurs who plan to launch their ventures. The stories offer insights into the common pitfalls and challenges faced by startups. They help entrepreneurs make informed decisions as they start and grow a business.

1. Airlift

Airlift Express Team

Airlift set out to revolutionize urban transportation in Pakistan when it launched in 2019, founded by Usman Gul, Ahmed Ayub and Meher Farrukh. Focused on offering a reliable bus-hailing service, it targeted customers seeking an alternative to traditional public transport. With its efficient service and user-friendly app, Airlift swiftly gained popularity, making commuting easier for many people in major cities like Lahore and Karachi.

Transitioning to Quick Commerce

The challenges brought about by COVID-19 significantly impacted public transportation services. In response, Airlift strategically shifted its focus from transportation to quick commerce (Airlift Grocer). This involved delivering groceries and essential goods directly to customers’ doorsteps, with a promise of delivery within 30 minutes. Leveraging their existing logistics network, the aim was to capitalize on the surging demand for online shopping and home delivery.

Funding Success

Airlift’s pivot attracted significant investor interest. The company raised over $85 million in funding from global investors. This capital influx let Airlift expand. It lets them build a strong infrastructure and grow across cities. Investors like First Round Capital and Indus Valley Capital led the funding round. It was one of the largest in Pakistan’s startup history.

Operational Challenges

Despite its initial success, Airlift faced several operational challenges. The quick commerce model required a vast inventory of products. It also required managing complex logistics and ensuring timely deliveries. High operational costs became a significant burden. The need for many vehicles, many warehouses, and much manpower added to the expenses.

Market Competition

Airlift’s quick commerce (Airlift Grocer) venture entered a competitive market. Daraz, GrocerApp, and many local stores established themselves. They had already captured much of the market. Airlift had to compete with these giants. This needed not only lots of money but also a unique value proposition. But Airlift often failed to deliver one.

Pakistan’s economic situation further exacerbated Airlift’s challenges. Rising inflation, currency depreciation, and fluctuating fuel prices increased operational costs. These economic pressures made it hard for Airlift to keep its low-cost promise. They also had to ensure profitability.

Closure and Aftermath

In July 2022, Airlift announced its decision to shut down its operations. The company cited two main reasons for its closure. They were a lack of lasting funding and rising costs. However, when its main investor withdrew support, Airlift found itself without the necessary funds to continue operating, leading to its sudden closure. The shutdown led to big layoffs. It affected hundreds of employees. They had been part of the company’s journey.

Lessons Learned

Airlift’s story offers several important lessons for startups:

• Transitioning can be smart. But it needs thorough market research and a solid plan.
• Controlling costs is crucial. This is especially true in high-burn business models.
• Having a competitive edge is vital. It means standing out from established competitors. This is the key to gaining and keeping market share.
• Startups must be ready for economic changes. These changes can impact their operations. Covid-19 was one of the reasons behind their failure.

2. CarFirst

Launched in late 2016, CarFirst operated as a mediator, purchasing cars from consumers and then selling them to dealers through online auctions, following a classic consumer-to-business-to-business model.

The online platform streamlined the process for car sellers, allowing them to get their cars inspected and sold within an hour, including the time taken for payment processing. CarFirst’s online auction platform for used cars also included an app, which provided partners and a network of buyers with a convenient way to find the cars they needed.

The Vision of CarFirst

CarFirst set out to make the used car transaction process simpler. They did this for both sellers and buyers. CarFirst aimed to remove the hassles of selling used cars the old way. They did this by offering instant quotes, free inspections, and quick payments. The company’s goal was to create a trustworthy, efficient marketplace.

Initial Success and Growth

CarFirst gained traction due to its innovative approach. The company set up a network of inspection centers. They expanded to major cities in Pakistan like Karachi, Lahore, and Islamabad. Customers could bring their cars for a free inspection. They would get an instant offer and get paid within hours if they accepted it. This convenience and transparency appealed to many car owners. They wanted to sell their vehicles without the usual delays and uncertainties.

Funding and Expansion

CarFirst attracted significant investment from both local and international investors. The company raised a lot of money in many investment rounds. This money let the company expand. It improved its technology and increased its marketing. The funding let CarFirst grow its network of inspection centers. It also lets them improve their services.

Operational Challenges

Despite its initial success, CarFirst faced several operational challenges. Scaling the business required big resources. They were for managing many inspections. They were also responsible for maintaining a logistics fleet and ensuring good customer service. Operations became more complex as the company expanded. This made it hard to keep them efficient and profitable.

Market Competition

The used car market in Pakistan is competitive and fragmented. CarFirst faced stiff competition. It came from traditional dealerships, informal networks, and other online platforms. These competitors had deep customer connections and local market knowledge. This made it hard for CarFirst to get and keep market share.

Economic Factors

Pakistan’s economic conditions played a critical role in CarFirst’s struggles. The country had economic instability. Inflation, currency loss, and changing interest rates hurt consumer spending power. These economic factors led to a decline in car sales. This decline affected CarFirst’s business volume and profitability. Also, the costs of importing car parts and running a large network increased. This strained the company’s finances more.

Trust and Transparency Issues

Building trust was hard. Traditional dealers and informal networks dominated the market. CarFirst worked to be fair and clear. But, it had to keep working to gain trust and overcome doubt. Ensuring consistent quality in inspections and offers was critical. But, any differences or bad customer experiences could erode trust.

Closure and Aftermath

In October 2021, CarFirst announced its decision to stop operations in Pakistan. The company cited economic challenges as the main reason for its closure. They also cited operational inefficiencies and intense market competition. The shutdown led to the closure of inspection centers. It also led to layoffs. It left many customers looking for other places to buy or sell their cars.

Lessons Learned

CarFirst’s journey in Pakistan provides several important lessons:

• Operational Efficiency: Scaling operations in a complex and competitive market requires careful planning. It also requires managing resources well.
• Market dynamics are key. Understanding local markets and customers is crucial. It helps in gaining and retaining market share.
• Economic Adaptability: Building resilience against economic fluctuations can help startups navigate challenging times.
• Building and keeping customer trust is essential for long-term success. It requires continuous work.

3. Cheetay

Cheetay, launched in 2015 by brothers Ahmad Khan and Majid Khan, made its mark as a well-known startup in Pakistan. Initially established as an online food delivery platform, Cheetay quickly found itself in competition with industry giants like FoodPanda. However, the company expanded its scope over time, venturing into the realm of grocery delivery, a move that gained significant traction, particularly during the COVID-19 pandemic.

Evolution of Services

As the demand for groceries surged, Cheetay initially employed a dropshipping model, facilitating the direct delivery of goods from stores to customers’ homes. Subsequently, the company pivoted to a quick commerce model, establishing dark stores to expedite deliveries and enhance overall customer experience.

Funding Milestones

In April 2021, Jabberwock Ventures, the parent company of Cheetay, secured $20 million in Series-B funding, underscoring investor confidence in the startup’s potential. While there were rumors of a larger investment specifically allocated for Cheetay Logistics, it was clarified that the funds were intended for all startups under Jabberwock Ventures, rather than solely for Cheetay Logistics.

Operational Challenges and Tough Decisions

Despite initial successes and significant investments, Cheetay found itself at a critical juncture after three years of operations. Facing operational challenges and economic headwinds, the company made the difficult decision to wind down its operations. This decision was precipitated by the inherent challenges associated with Quick Commerce’s high-burn business model and the limited demand for immediate grocery services.

Market Dynamics and Competition

Cheetay also encountered stiff competition in its restaurant aggregation business, particularly from FoodPanda, backed by substantial funding from DeliveryHero. The intense competition, coupled with economic uncertainties, exacerbated Cheetay’s struggles, ultimately leading to the cessation of its food delivery operations and the impending closure of all its services, including quick commerce.

Lessons Learned

The journey of Cheetay offers valuable lessons for startups:

• Operational Efficiency: Scaling operations in a complex and competitive market requires careful planning and resource management.
• Understanding Market Dynamics: Gaining insights into local markets and customer preferences is crucial for gaining and retaining market share.
• Economic Adaptability: Building resilience against economic fluctuations can help startups navigate challenging times.
• Trust and Transparency: Establishing and maintaining trust with customers is essential for long-term success and requires continuous effort and commitment.

4. Jugnu

Jugnu, a Pakistani startup founded in 2019 by ex-Unilever executives Sharoon Saleem and Yasir Suleman Memon, ventured into B2B e-commerce with the aim of digitizing and empowering small retailers. Building on their experience with Salesflo, a retail automation tool, the founders envisioned Jugnu as a platform to streamline inventory management and access to capital for retailers.

Vision and Services

Jugnu’s platform provided retailers with the tools to order and manage their inventory, offering a wide range of products from various suppliers. The startup’s services aimed to simplify supply chain management and enhance retail efficiency.

Funding and Expansion

With a total funding of $25.7 million across three rounds, including a significant Series A round of $22.5 million led by MENA-based e-commerce marketplace Sary, Sarmayacar, and Systems Limited in March 2022, Jugnu experienced rapid growth. At its peak, the startup had onboarded over 30,000 retailers across Islamabad, Rawalpindi, and Lahore.

The Downfall

Despite substantial funding and initial success, Jugnu encountered numerous challenges that ultimately led to the cessation of its core operations:

1. Investor Withdrawal: A significant setback occurred when an investor withdrew support from Jugnu, leading to financial difficulties that proved insurmountable.
2. Profitability Hurdles: The FMCG sector’s slim profit margins and high operational expenses posed significant challenges for Jugnu’s profitability.
3. Internal Mismanagement: Internal inefficiencies and mismanagement resulted in notable losses in inventory, primarily due to internal theft.
4. Work Culture Issues: Former employees highlighted a toxic work culture and unprofessional conduct from senior management as contributing factors to Jugnu’s downfall.

Transition and Closure

In response to these challenges, Jugnu announced a pivot away from its self-managed fulfillment centers, logistics, and inventory model. Instead, the company planned to leverage its tech and data suite to facilitate commerce and financial inclusion. However, this transition resulted in layoffs and ultimately led to the shutdown of the startup.

Lessons Learned

The story of Jugnu underscores the volatility of the startup landscape, where external factors like investor sentiment and internal issues such as management and efficiency play significant roles. Jugnu’s closure serves as a poignant reminder of the importance of sustainable business practices and the need for startups to adapt to shifting economic realities.

Conclusion

The stories of Airlift, Cheetay, and CarFirst highlight the blend of innovation and potential inherent in Pakistani startups, alongside the multitude of challenges they face. These ventures underscore the importance of adaptability, cost management, and a deep understanding of market dynamics. Economic instability, fierce competition, and regulatory hurdles often pose significant obstacles to their success.

Despite receiving substantial funding and experiencing strong initial growth, these startups ultimately succumbed to a myriad of operational issues and external pressures. However, their closures offer valuable lessons for future entrepreneurs.

Future startup founders can glean important insights from these failures, emphasizing the necessity of establishing a robust business model, differentiating themselves from competitors, and remaining prepared for economic fluctuations. While the closures are undoubtedly disappointing, they provide invaluable lessons that can guide future startups towards success in Pakistan’s dynamic startup landscape.

Achieving success in Pakistan’s startup ecosystem necessitates meticulous planning, meticulous execution, and a steadfast focus on addressing market needs. By internalizing the lessons learned from these closures, future startups can navigate the challenges more effectively and increase their chances of long-term viability and success.

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Maqsad, a Karachi-based edtech startup, has raised $2.8 million in a seed round, it announced today. Speedinvest, one of the largest seed funds in Europe, is leading this generation, and includes contributions from Indus Valley Capital, Stellar Capital, Alter Global, Johann Jenson (SVP Product at GoStudent) and others other angels. The startup said it raised a round and brought its total capital to date to $4.9 million. Maqsad has raised $2.1 million in seed funding in late 2021.

Founded in 2021 by Rooshan Aziz and Taha Ahmed, Maqsad aims to make education accessible to 100 million Pakistani students through an end-to-end mobile learning platform that provides tutorials, tests and quiz solutions for students in classes 9 to 12. month, Maqsad’s mobile application was downloaded over 1 million times, answered 4 million questions from students and continues to be ranked as the #1 teaching application in Pakistan on the Google Play Store, the source said and declaration.

The edtech platform seeks to disrupt the learning ecosystem by providing exceptional learning experiences for students at a low cost. The agency has collected feedback from 20,000 students and teachers across Pakistan to ensure that learning outcomes are achieved. Maqsad’s question-solving technology (“DoubtSolve”) and interactive research solve major problems for students who do not have access to good teachers.

With only one teacher for every 44 students, Pakistan has one of the highest student-teacher ratios in the world, a statement from the Karachi-based startup said. The edtech ecosystem can play an important role in solving various problems facing the country’s education sector, including the problem of student-teacher ratio.

“We recently improved our assessment plan, which allows students to confidently assess themselves, and have seen a consistent improvement of more than 150% month-on-month in the questions asked,” said the company’s official, Rooshan, in a statement.

Maqsad competes directly with local startups like Edkasa and Middle Eastern edtech platforms Noon and Abwaab, which have expanded in Pakistan in recent years. With its latest investment, Maqsad has become the highest-grossing community startup in Pakistan. It plans to use these funds to expand the theme offering and to improve the technology behind the platform. In addition, Maqsad’s long-term vision is to enter the education system, where the company has already received interest from private and public companies for partnerships.

Pakistan is an untapped edtech market, with annual spending expected to reach $37 billion by 2032. A quarter of that is spent on after-school education. , which is often expensive and difficult to obtain. The incoming investor Speedinvest is an experienced edtech investor, with Vienna-based GoStudent, an edtech unicorn, already in its portfolio. This investment in Maqsad demonstrates its potential to touch the lives of millions of students and transform the educational environment.

Philip Specht, Partner at Speedinvest, said in a statement,

“We like Rooshan and Taha as team builders and believe that Maqsad is on its way to becoming one of Pakistan’s most successful businesses.”

Indus Valley Capital, a venture capital investor, managed to double its funding, reflecting Rooshan and Taha’s vision for education in Pakistan. Indus Valley Capital founder Aatif Awan explained, “Investing in Maqsad again is a no-brainer as we have seen them bring together one of the best startup teams in Pakistan to create an original product that has helped over a million students.”

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In the past, Pakistani startup culture had a shady reputation. People were only familiar with a few successful companies. However, in recent years, the top Pakistani businesses have been introduced. Additionally, the popularity of these businesses grew as they adopted modern technology and increased their use of the internet for marketing.

The top 12 most successful and successful startups in Pakistan in 2022 will be listed and described. If you’re seeking for the best and most successful startups in Pakistan in 2022, stay on this page.

Some Pakistani startups are fast expanding. It is therefore hard to ignore them. They give their consumers the best service possible and use innovative technology for safety and security.

People sometimes wonder and look for which Pakistani startup is on the top list of those with the fastest growth rates. However, there is no need to be concerned because some of the best and most successful startups in 2022 are presently operating in Pakistan, with a faster growth rate, as detailed below.

Tajir

In 2022, Tajir will be Pakistan’s best and most successful startup. It was created by Babar Khan and Ismail Khan. It was then launched in Lahore in 2018. It now ranks among the finest startups in Pakistan.

B2B, marketplace, retail, and e-commerce facilities are all available at Tajir. It is now widely regarded as the top B2B (business to business) mobile application, offering a wide range of services including e-commerce, retail, and marketplace. Tajir has 22 investors and has raised funds in four rounds. It received $18,950,000 in total funding. This startup employs approximately 11 to 50 people.

Dawaai

Dawaai is a famous digital health information platform in Pakistan. It contains a variety of health-related information. It also has an online pharmacy and generic drugs network.

Dawaai was founded in 2013 by Furqan Kidwai, who is the founder of this firm. It can be found in Karachi. It connects a variety of industrial services, including e-commerce, mobile health, the internet, health care, and pharmaceuticals.

This startup currently employs between 101 and 250 people. This firm has received investment from eight investors and has completed six funding rounds to date. The total amount of investment is $9,500,000. Customers can order products for daily well-being, herbal and homoeopathic remedies, sexual wellness, and medical equipment. It has also offered blogs about the products that include uses, side effects, warnings, and other product information.

Airlift

To provide outstanding services, airlift technologies best platform and revolutionary processes. It provides customers with 30-minute delivery of critical household supplies.

Meher Farrukh, Muhammad Owais, Usman Gul, Awaab Khakwany, Zohaib Ali, and Ahmed Ayub formed the Airlift startup in Lahore in March 2019. Its services are currently available in eight cities across Pakistan. It has a total funding amount of $109.2 million.

During the COVID-19 epidemic, airlift services were also available. They provide services to consumers with the help of sophisticated buses. However, the pandemic was fatal to the company. They began again in September 2020, focused on delivery products. The airlift, though, marked a new high for Pakistani companies. In August 2021, it raised $85 million in a series B financing. As a result, airlift surveillance will be required in 2022.

Grocer App

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Syed Amin-ul-Haque, the Minister of Information Technology and Telecommunication, said that 272 entrepreneurs had graduated from Ignite’s National Incubation Centre (NIC), with a total financial commitment of Rs. 8 billion and cumulative revenue of Rs. 3 billion.

In the previous three and a half years, these emerging companies have established more than 100,000 new employment, according to the minister, who spoke as the keynote speaker at the ‘Accelerator Program for Women Entrepreneurs’ in Islamabad on Monday. The programme was launched in partnership with the American Embassy for Women Entrepreneurs by The Indus Entrepreneurs Islamabad office (TiE Islamabad), which provides growth stage start-ups with the necessary tools, coaching, and mentoring, as well as access to global investors and venture capitalists.

In top American ecosystems like San Francisco, Austin, Seattle, Boston, Washington, D.C., and New York, the primary programme concentrates upon networking, mentoring, and investor engagements. According to the initiative, the nine female entrepreneurs will travel to America for eight weeks on May 10, 2022.

Minister Haque announced that Pakistan’s First National Investment Platform, termed ‘PakImpactinvest,’ was recently created by the Ministry of Information Technology and Telecommunication (MoITT) and its Tech Innovation Arm, Ignite. He stated that the pandemic has energised Pakistan’s startup scene, resulting in an increase in investment from $65 million in 2020 to $350 million in 2021. Entrepreneurs were able to produce digital products with human implications thanks to the extended lockdown and quarantines.
Minister Haque stated that the government has permitted startups to hold shares outside of Pakistan, which has aided foreign investment.

According to transaction flow numbers from 2018-19, 63 percent of money raised by female-led businesses came from angel investors, while 25 percent came through development programmes. Access to early-stage and growth-stage finance is one of the biggest hurdles for emerging technology-based firms.

“I am confident that our programme will effectively close the gap. Furthermore, there is a pressing need to increase the overall funnel of women-led businesses, whether by encouraging incubators and accelerators to actively seek out more female founders for their programmes, or by providing more hands-on support to women-led businesses at the early stages and improving their access to post-seed investors,” the IT Minister said.

He also advised TiE Islamabad to take the initiative, noting that programmes such as the US State Department-funded Accelerator Program for Women Entrepreneurs address this gap through its innovative design and experimental learning platform, giving this group of women entrepreneurs access to international incubators and foreign investors.

Minister Haque stated, “I am particularly pleased about the role the Pakistani diaspora in the United States will play in assisting our women-led firms.”

TiE, with its roots in Silicon Valley and an extensive network of partners in the United States and Pakistan, is well positioned to provide this group of women entrepreneurs with much-needed worldwide exposure and connections.

On the occasion, the Minister Counselor for Public Affairs at the US Embassy, Raymond Castillo, said, “We at the United States Embassy have been impressed by the commitment to excellence that all of the original 500 applicants showed throughout the virtual program. These efforts will lead to a brighter future for Pakistan and the world”.

“As the finalists here today, you should be extremely proud. Your persistence has paid off, and you will now represent Pakistan in the United States. You are the future women entrepreneurs of Pakistan,” he added.

The Accelerator Program for Women Entrepreneurs, a TiE training program and competition for women entrepreneurs that is funded by the U.S. Embassy Islamabad, is an innovative program that connects women-owned Pakistani start-ups with American business tools, coaching, and mentoring. It received an overwhelming response from 450 women-led businesses. Later on, 75 shortlisted startups went through a rigorous process of mentoring workshops and pitching competitions from which the top 12 start-ups were selected for a 15-week Founders Institute Acceleration Program.

During the trip, the women entrepreneurs will attend major conferences and participate in exposure visits to Microsoft, Amazon, Facebook, Twitter, and PayPal’s offices. They will also visit US-based incubators such as 9 Mile Labs, Kiwi Tech, Angel Pad, and Alchemist, and will be provided with multiple networking opportunities throughout the eight weeks and will pitch to selected US-based investors on the East and West Coasts.

TiE was founded in Silicon Valley by a group of successful entrepreneurs, corporate executives, and senior professionals and has since evolved into one of the largest global organizations with the express mission of fostering entrepreneurship. There are currently nearly 11,200 members, including over 2,860 charter members in 57 affiliate chapters across 14 countries.

Launched in 2008, TiE Islamabad is a leading driver of the entrepreneurial ecosystem in Pakistan. It operates Pakistan’s only self-sustainable co-working space for women. The ceremony was attended by senior officials from the MoITT, Minister Counsellor for Public Affairs, Public Diplomacy Officer, Paul Giblin, and other officials from the American Embassy and TiE Islamabad.

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The State Bank of Pakistan (SBP) on Wednesday removed the main obstacle to the development of start-ups, allowing them to take advantage of external loans such as convertible bonds. Financing from abroad allows them to take advantage of loans such as ”convertible debt”.

In order to obtain loans from foreign investors, the current form of law once again prohibits people from obtaining such loans, and only allows Pakistani companies to do so in very limited circumstances.

It limits the entire purpose of generating convertible debt for startups, because its goal is to quickly make money from existing investors. Start-up companies have always asked for foreign loans that can be converted into shares.

Changes were made to the currency manual.

If the startup is successful, they will raise the first round of funding and start selling products or services to target customers. However, in the case of higher growth requiring more financing, startups hope to obtain loans from abroad, but the regulations of the National Bank are hindered.

Convertible debt is a form of financing that can be converted into stocks. SBP said that the shares of the borrowing company are subject to certain terms and conditions.

Before the last instruction, the entity is allowed to define in the Trading Manual (FEM) Obtain foreign currency loans from abroad within the parameters, but it is not a specific category that provides the option of converting loans into company equity. Start-ups are facing financing problems due to the inability to obtain collateral or collateral.

Foreign countries including equity funds and angel investors Investors have shown interest in start-ups, but they will try to hedge risks through alternative methods such as high loan yields.

“It is expected that this initiative will help in attracting more foreign investment as it will provide another option to the international investors to invest in startup companies operating in Pakistan,” said the SBP.

Those who are hesitant to participate in the equity of startups in the early stage can provide financing under this category and in the later stage. Decided to participate in equity in order to implement these changes, the relevant provisions of FEM Chapter 19, SBP said.

In early February this year, the Bank State released a working paper on Start-ups to release convertible bonds from abroad, which stated that it is designing a new type of Loan program to meet the specific needs of companies and emerging companies.

According to this working document, startups and venture capital companies believe that foreign investors intend to invest in their companies in the form of convertible debt (that is, loans that can be converted into equity) , Rather than directly as equity investment, and current foreign exchange regulations still cannot provide this convenience.

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