Funding Shifts, Angel Connections, and Resilient Innovations
Invest2Innovate (i2i)
An Ecosystem Designed to Foster Innovation, Amplify Impact, and Fuel Growth for Startups!
TL;DR
Hello Readers, As November came to a close, Pakistan’s startup ecosystem activity remained modest. This month saw total funding activity at $4 million (Neem raising the totality of the amount) and on the M&A side, OPay International acquired Finja Private Limited. In other news, Shark Tank Pakistan continues to impress, this time in the form of the show’s biggest deal.
November's Funding Highlights 🚀
Neem , an embedded finance platform, raised a $4 million credit facility from South Africa-based DNI Group . This funding will expand Neem’s Paymenow, a Shariah-compliant earned wage access (EWA) solution, allowing employees in Pakistan to access up to 50% of their salary before payday. This partnership aims to address the financial pressures faced by Pakistan’s 60 million employed workforce and emphasizes ethical financial solutions to underserved segments.
From the desk of i2i 👀
i2i’s Programs Team at +92 Disrupt
Special Technology Zones Authority - STZA , Telenor , and Invest2Innovate (i2i) , supported by Telenor Velocity and Visa Foundation, are hosting a roundtable, “From Idea to Impact: Closing the Funding Gap in Pakistan’s Startup Ecosystem”, at @+92Disrupt on December 14 in Karachi. The session seeks to address the funding gap for startups by facilitating actionable discussions among Entrepreneurial Support Organizations (ESOs), corporates, investors, entrepreneurs, and policymakers driven by research and findings from i2i's upcoming Startup Ecosystem Report 2024, the discussion will aim to find solutions for:
Crafting Your Investment Thesis: Angel Investing Guidebook 📕
We’re excited to share The Starter Guide to Angel Investing in Pakistan, authored by Saba Kalsoom (Program Ecosystem Lead, i2i) and Mubariz Siddiqui (Founding Partner, Carbon Law ). Pakistan's angel investment ecosystem faces challenges due to its small and fragmented nature, limited investor awareness, and a lack of standardized investment practices. This results in a fragmented funding landscape, making it difficult for early-stage startups to secure adequate funding. This guide seeks to bridge the funding gap by:
Let's empower more angel investors to support the next generation of innovators. Share this guide with your network today!
🔗 Download Here: The Starter Guide to Angel Investing in Pakistan.
🌟 Introducing the i2iScale Sprint 3!
We’re thrilled to announce the 12 startups embarking on their transformative journey through i2iScale Sprint 3. These incredible ventures, driven by visionary founders and co-founders, represent innovation, resilience, and a commitment to reshaping industries in Pakistan and beyond. Here’s the cohort breaking new ground across the Growth and Fundraise Tracks:
🚀 Growth Track
Startups:
Recommended by LinkedIn
Coaches:
💰 Fundraise Track
Startups:
Coaches:
Each of these startups will begin their Sprint with diagnostic sessions led by our talented coaches to map out their unique challenges and opportunities, followed by mentorship and actionable strategies. These startups are building a future we’re all excited to see!
👌 Pitch Perfect: Founder-Angel Connect Event
Our Programs team organized the Pitch Perfect event on 13th November to help startups meet potential investors. Five startups— Fortify , Paymo. , CalCart , EZ Wage , and SalamKidsTV —presented their pitches to our investor network. Which included 11 angels, 2 debt financiers, and 1 VC. The event resulted in 10 curated connects which the i2i team is facilitating to help startups actualize angel investment.
November 2024 - This month in news!
Industry news and highlights
SECP Hosts Pakistan’s First Startup Summit: The Securities and Exchange Commission of Pakistan SECP inaugurated the country’s first-ever Startup Summit in November, marking a significant step toward fostering innovation and economic growth. The event saw participation from policymakers, founders, international experts, and key stakeholders who shared insights on building a resilient startup ecosystem. In a video address, Finance Minister Mohammad Aurangzeb underscored the government’s commitment to innovation as a driver of economic progress, commending SECP's initiatives like the Regulatory Sandbox and streamlined incorporation processes for supporting fintech and other high-impact sectors. SECP Chairman Akif Saeed highlighted the crossroads faced by Pakistan’s startup ecosystem, emphasizing the SECP’s role in driving change through innovative systems like LEAP and the regulatory sandbox. The event also featured multiple panel discussions involving key ecosystem players.
Pakistan’s Push for Sustainable Mobility, New Electric Vehicle (NEV) Policy Unveiled: Pakistan is making strides toward a greener future with an ambitious New Energy Vehicle (NEV) policy aimed at achieving 100% zero-emission vehicle sales by 2060. The policy introduces significant incentives, including subsidies of Rs. 50,000 for electric motorcycles and Rs. 200,000 for three-wheelers, reduced financing rates, and infrastructure development through a New Energy Fund and Vehicle Centre. Partnerships with global players like BYD Group and Dewan Motors signal a growing commitment to local manufacturing, supported by incentives for NEV-specific parts, battery production, and charging systems. While the policy aligns with climate goals and aims to reduce reliance on imported petroleum, the Pakistan Automotive Manufacturers Association (PAMA) has raised concerns about its potential impact on local manufacturing and policy consistency. Suggestions include aligning incentives across vehicle categories and extending hybrid benefits. Balancing sustainability with economic interests will be key to ensuring Pakistan’s success in transitioning to a green mobility future.
Saraaf Breaks Global Shark Tank Record: Syed Muhammad Ismail , co-founder of Saraaf and a LUMS graduate, made history by securing a $5.4 million deal on Shark Tank Pakistan, the largest investment commitment across the show’s global series. Saraaf, a B2B commodity sourcing company specializing in premium materials from Central and South Asia, is set to revolutionize traditional industries by digitizing and formalizing sourcing solutions. This investment highlights Pakistan’s entrepreneurial potential and global investor confidence.
i2i to Launch Pakistan Startup Ecosystem Report 2024: Mark your calendars for December 12th! We are thrilled to announce the launch of the Pakistan Startup Ecosystem Report 2024 in Karachi. This report provides insights into the country's startup landscape, covering trends, challenges, and opportunities across various sectors. The event will bring together industry leaders, investors, and innovators for discussions on the startup ecosystem. Stay tuned for exclusive highlights and findings from the report!
Trending Reads & Must-Watch this Month
Pakistan’s New Internet Firewall: The Pakistani government has rolled out an internet monitoring system sourced from China, signaling a major leap in digital surveillance capabilities. This sophisticated firewall enables unprecedented control over internet traffic, allowing authorities to filter content, block specific app functionalities, and potentially restrict VPN access with a level of precision previously unseen in the country. Amid ongoing political tensions, the new system has already triggered noticeable disruptions, with internet users experiencing connectivity issues and limited multimedia services. For Pakistan's tech ecosystem, this development raises critical questions about digital privacy, innovation potential, and the future landscape of technological freedom. You can read more about it in this exclusive Al Jazeera article.
State Bank of Pakistan's Deposit Rate Overhaul: The State Bank of Pakistan has introduced significant changes to deposit regulations, removing the Minimum Deposit Rate (MDR) for corporate clients while implementing a new profit-sharing benchmark for Islamic Banking Institutions. Effective January 1, 2025, this policy shift allows banks greater flexibility in setting deposit rates, potentially reducing deposit costs by 50-100 basis points and creating a more competitive banking landscape, with immediate market implications seen in stock performances, particularly for banks like Meezan Bank. You can read more about it in this article by Profit.
Mergers and Acquisitions: OPay International has acquired Finja Private Limited, a licensed Electronic Money Institution in Pakistan. This strategic move enhances OPay’s footprint in Pakistan’s fintech space, enabling greater digital financial inclusion. OPay’s Country Head, Aurang Zeb Khan, talking to DAWN newspaper, highlighted Pakistan’s immense potential, emphasizing the role of technology in empowering individuals and businesses. Saad Hassan, CEO of Finja, Inc., welcomed the acquisition as a fresh chapter, signaling growth and innovation for the country’s financial ecosystem.
What's Next?
We're excited to see what other surprises our resilient ecosystem has in store. But other than that, we are publishing the Pakistan Startup Ecosystem Report 2024. Keep an eye out for it!
P.S. Got thoughts on our newsletter? Stories to share? Hit us up! We love hearing from our community.