Pakistani startups raised $174 million in disclosed funding across 17 deals in the first quarter of 2022. Compared to the first quarter of 2021, it’s an increase of 776% from $20 million. And, compared to the fourth quarter of 2021, it is an increase of 140% from $71 million. During the first three months of the year, Pakistani startups raised half of the total funding raised in 2021. It was also the best quarter for Pakistani startups ever. Previously, 18 deals totaling $172 million were recorded in Q3 of 2021. Some of the best startups that have raised funding during 2022 are:
Savyour was launched in August 2020 by brothers Umair and Saad Gadit. To date, it has raised $3.3 million in funding. Foodpanda, Pizza Hut, Daraz, etc., are some of the household brands it currently works with. Savyour is working with over 40 brands across five different categories to offer its in-store cashback program. In the near future, this will steadily increase.
DigiKhata is a Faisalabad-based Fintech startup that was founded in 2020 by Adnan Aslam and Bilal Anjum. Last year it raised $2 million in seed funding from MSA Capital, Shorooq Partners, SOSV, and +92 Ventures.
DigiKhata has partnered with PayFast to provide digital payment solutions to their customers. DigiKhata is a cloud-based bookkeeping and accounting app that helps small businesses manage their financial ledger. PayFast allows businesses to accept payments from their customers via various online payment methods. With this partnership, DigiKhata users will be able to accept payments through DigiCash.
DigiCash is DigiKhata’s payment feature that allows businesses to accept Visa, MasterCard, UnionPay, PayPak, and bank accounts and mobile wallets. PayFast will power the underlying technology that will enable DigiCash to process payments. DigiKhata claims to have 2 million users with an estimated $1billion plus in ledger transactions recorded on the app. It faces competition from other well-funded startups in the digital ledger space like CreditBook, Bazaar’s Easy Khata, and mKhata.
Zaraye, a Karachi-based B2B raw materials marketplace, raised $2.1 million in pre-seed funding from Tiger Global, Zayn Capital, +92 Ventures, and multiple angel investors. Zaraye was founded in 2021 by Taha Iqbal Teli, Hashair Junaid Ahmedani, and Ahsan Ali Khan.
Approximately 20% of Pakistan’s economy is derived from manufacturing, accounting for $35 billion in raw materials annually. Raw materials account for 60 to 65% of the cost of making things in Pakistan. Sourcing raw materials for manufacturing is a multi-step process, each being complex and fragmented.
Zaraye wants to solve this problem by creating a marketplace of buyers and sellers where buyers post product requirements and suppliers provide quotes in real-time. Zaraye’s mission is to help manufacturers find opportunities to scale and optimize to compete in the global market. Within just six months of launch, Zaraye has over 500 partners and suppliers in over 20 cities, serving clients across the textile and construction industries.
Abhi was founded by Omair Ansari and Ali Ladhubhai in 2021. To date, it has raised $19+ million in funding and is now valued at $90 million.
Abhi, a Karachi-based provider of salary and working capital advances, raised $17 million in Series A funding from Speedinvest, Global Ventures, VentureSouq, VEF, Sturgeon Capital, Rallycap, FJ Labs, Fatima Gobi Ventures, Sarmayacar, and i2i Ventures.
It is common in Pakistan to not receive salaries on time. Some people go months without receiving their salaries. Nonetheless, bills must be paid in full on time. People often borrow money from friends and family or use credit cards to pay their expenses and bills. Abhi offers a solution to all these problems.
Upon registering with Abhi, employers can create employee accounts. Employees can access funds through it at a flat 2% fee. After that, the amount is automatically deducted from the next paycheck. Additionally, it provides financing for working capital requirements for small and medium-sized businesses. It is currently working with 150 companies, including Baskin-Robbins, QisstPay, VavaCars, and Daraz.
SadaPay was founded in 2019 by Brandon Timinsky. To date, SadaPay has raised $20 million in disclosed funding.
The Islamabad-based neobank, raised $10.7 million in seed extension from Recharge Capital, Kingsway Capital, and Raptor Group. Previously, it raised $7.2 million in seed funding from the same investors.
With SadaPay you may open an account within two minutes by taking a selfie and a picture of your ID card. Instantly, you will receive a virtual MasterCard debit card. Once the account is opened, you will be able to make online purchases on apps and websites such as Foodpanda, Amazon, AliExpress, Netflix, and Spotify. In just 2-3 business days, you will receive a physical Mastercard at your doorstep.
SadaPay offers 24/7 in-app chat support with a median response time of fewer than 30 seconds compared to traditional banks. Remittances from 55+ countries worldwide are free, and you can withdraw cash for free from any ATM in Pakistan. SadaPay makes money by providing value-added services. For instance, it charges a fee to freelancers to accept international payments. It also offers payroll services to businesses.
On April 17th, SadaPay announced that it had been awarded a commercial license from the State Bank of Pakistan to provide financial services via its smartphone app as an Electronic Money Institution (EMI). SadaPay competes with NayaPay and TAG in the neobank space.