A high-profile panel discussion on Pakistan’s digital future attended by prominent players in the local digital industry was hosted by Serena hotels as part of its public diplomacy initiative called ‘Raabta’.


https://dailytimes.com.pk/567091/moot-highlights-challenges-faced-b...


The event titled ‘Re imagine our Digital Future – Preparing to Thrive or Survive?’ was hosted by raabta curator and prominent journalist Sidra Iqbal.


A lively and thought-provoking discussion was held about the challenges facing the local digital economy in face of its rapid expansion, and the challenges and opportunities this brings in terms of innovation, governance, job market, cyber risks, regulation and ease of doing business.

“The focus of the event is to discuss the potential benefits and costs arising from global digital technology changes and, importantly, anticipate public policy solutions to emerging problems that will shape the future of society and the economy for generations to come,” said Sidra Iqbal. “Change can come within a generation if managed properly, rather than waiting for millennia. We are asking if the policymakers going to be reactive to the digital revolution or take the bull by the horn and prepare an environment for the digital economy to thrive?”



The keynote speaker at the event was ‘Digital Pakistan’ initiative chief Tania Aidrus, who spoke about the five pillars that form the cornerstone of the government’s digital policy, which include access and connectivity, digital infrastructure, e Government and digital skilling. Tania said the response to the PM’s digital initiative was overwhelmingly good and it felt like a movement already. She said a lot is happening in the digital arena but it’s important to keep an end view in sight and take a strategic approach. She said the efforts at provincial and federal levels have to be synchronized to achieve the objectives on a broader scale. She said the internet is a democratizing force and digital allows equitable access to knowledge provided the affordability of digital infrastructure was enabled and commodities like the internet are not taxed as a luxury item.

The panel included prominent figures of the local digital landscape including GM of Careem Zeeshan Hasib Baig, MD Daraz.pk Ehsan Saya, CEO Foodpanda Nauman Sikandar Mirza, Chief Corporate and Enterprise Officer Jazz Ali Naseer, MD KPITB Dr Shahbaz Khan and Chief Business Support Officer U Microfinance Bank Sharmeen Niaz.



Zeeshan Hasib Baig said that Careem has enabled 500,000 jobs which shows that going digital will not take away jobs as some fear, however it will change the way we work and make it more efficient so the focus can be on better quality leading to productivity gains. He said digital companies like Careem are improving livelihoods, moreover they are allowing females much better mobility for work and leisure.

Ali Naseer from Jazz said “we need to change the lens of how we look at things and there needs to be a paradigm shift in our traditional processes to allow for digital to be effective lest we become redundant.” “Whilst we have 3G/4G broadband license since 2014 but less than 40% of the population is connected on broadband currently which is a travesty.”

Nauman Sikander Mirza of food delivery service Foodpanda Pakistan said that Pakistan’s digital economy was in very early stages with no e-commerce companies operating in the country and very few government entities using automation.

MD of online selling platform Daraz.pk Ehsan Saya spoke about digitization boosting the trade industry like never before despite the fact that the majority of the population is not accustomed to buying online. He said the e-commerce will pick up eventually when the government improves regulation.

Bayut (#Dubai) & Zameen (#Pakistan) parent EMPG #emergingmarket #realestate business group raises $150 million at a valuation of over $1 billion, announces merger with OLX in a few markets, including Pakistan


https://www.menabytes.com/empg-olx-150-million/?fbclid=IwAR1xyiifK4...

Dubai-based Emerging Markets Property Group (EMPG) that runs property portals in different emerging markets across the world including Bayut in Dubai, Zameen in Pakistan, and Mubawab in North Africa, has become a unicorn after raising a $150 million round led by OLX Group and its existing shareholders, the company announced in a statement to MENAbytes today.

EMPG did not disclose the exact valuation but said the deal values the company at over $1 billion post-transaction.

The deal includes merger of OLX Group’s classifieds business with Emerging Markets Property Group (EMPG) in Pakistan, Egypt, Lebanon, and the United Arab Emirates.

OLX Group with the deal has become the single largest shareholder of EMPG, owning 39 percent of the company. The $150 million investment is fresh cash injection and will be used by the company to develop a range of new services, creating a more seamless user experience, enhancing data transparency, and deepening market intelligence for both consumers and business users.

According to the statement, EMPG will operate existing OLX platforms in Egypt & Lebanon, and roll out new services for the real estate community. EMPG before the deal did not have any presence in Egypt & Lebanon.

In Pakistan & United Arab Emirates, the platform of both the groups which apparently include EMPG’s Zameen & Bayut and OLX Groups’ OLX and Dubizzle, will be operated EMPG.

EMPG will also operate OLX’s platforms in Saudi Arabia, Bahrain, Kuwait, Qatar, and Oman after this deal.

The statement notes that the aggregated value of properties sold in these markets is estimated at $90 billion, providing a commission pool for real estate agencies of over US $2 billion per annum, “This presents a great opportunity for EMPG to enhance their real estate services in these markets.”

Imran Ali Khan, the co-founder, and CEO of EMPG, said, “EMPG has grown at a tremendous pace since its inception. Our unique ability to scale using our proprietary tech has aided and enabled this expansion. This deal puts us one step further in our journey towards providing solutions in multiple markets to over a billion consumers around the world, expanding our classifieds offering significantly.”

Martin Scheepbouwer, CEO of OLX Group, says “I’m proud of what we have built in these four markets. Our brands are household names, and currently help tens of millions of people to exchange goods and services every month. The next phase is an exciting one, with EMPG’s real estate industry expertise helping deepen the customer experience. As EMPG’s largest shareholder, we’ll have a front seat to explore how we can scale their services model further – taking our ambition to shape the future of classifieds into its next stage.”

Haider Ali Khan, Head of EMPG – MENA on this collaboration: “We, at Bayut and EMPG, are very excited about the future of the UAE real estate industry and the prospects of real estate in the MENA region. This merger of EMPG and OLX will allow us to better serve our customers, given that both operate brands with a strong following and will allow us to leverage existing tech and data to paint a more accurate picture of the state of affairs in the real estate industry across the region.”

“At the same time, we will be making significant technology investments to provide more value to all users of property, automotive and other segments of the Dubizzle and OLX platforms. I look forward to a bright and prosperous future for the group,” he added.

EMPG is currently present in the GCC region with Bayut, Pakistan with Zameen, Bangladesh with Bproperty, Morocco and Tunisia with Mubawab, and Thailand with Kaidee.

Y-Combinator backed #Lahore-based #Pakistan #startup Tajir raises $1.8M to help mom-and-pop stores source inventory. It is led by Pioneer Fund, Golden Gate Ventures, Fatima Gobi Ventures, Karavan, and VentureSouq. | TechCrunch

https://techcrunch.com/2020/06/05/yc-backed-tajir-raises-1-8m-to-he...

But slowly, global investors who arrived in India and other Asian markets in the last decade are beginning to look at Pakistan and bet on startups that are solving similar challenges.

Tajir, a Lahore-headquartered startup, today serves more than 15,000 neighborhood stores, locally known in the region as kirana, across Pakistan.

The two-year-old startup, the first startup from the nation to be backed by Y Combinator, said on Friday that it has closed a new financing round.

Pioneer Fund, Golden Gate Ventures, Fatima Gobi Ventures, Karavan, and VentureSouq led the round, with participation from a clutch of angel investors, Tajir co-founders Babar Khan and Ismail Khan told TechCrunch in an interview.



Tajir offers full transparency on the prices of various products, addressing a challenge that store owners confront offline each day, and sells and delivers inventories to the stores, said the Khan brothers, whose father ran an FMCG retail distribution business for three decades.

“We help store owners save money on inventory and help them boost their sales,” said Ismail.

Like in India, offline retail drives the vast majority of sales in Pakistan. “The retail is even more unorganized here compared to neighboring nations,” they said. There’s no Amazon or any major giant running an e-commerce business for consumers in Pakistan today.

For Babar and Ismail, that’s a big opportunity as they scale. According to official government data, there are about 2 million neighborhood stores in Pakistan.

Tajir is gaining ground in the country today mostly through word-of-mouth endorsement from existing partners, though the startup also maintains a sales team to educate more store owners about their platform.

It plans to use the capital to expand its offering and develop more services that stores need to grow their business, the brothers said. These offerings could include a wider catalog of inventory, and access to financial services, they said.

“We want to offer an essential service to every single mom-and-pop store in Pakistan,” said Babar.

Tajir today does not have any major competitor, which is good news as a lot is riding on its founders’ shoulders who are among the early batch of entrepreneurs in the country. In many ways, their success will determine the perception of the Pakistani market to investors worldwide.

Prosus Ventures leads $13 million series B #investment in #Pakistan's ride-hailing #startup Bykea. Current investors Middle East Venture Partners & Sarmayacar also invested in the round, bringing total to-date raised to $22 million. #tech https://tcrn.ch/3iddjcF via @techcrunch

The startup has been able to out compete firms like Careem and Uber in Pakistan by offering localized solutions. It remains one of the few internet businesses in the country that supports Urdu language in its app, for instance.

“Our brand is now widely used as a verb for bike taxi and 30 minute deliveries, and the fresh capital allows us to expand our network to solidify our leading position,” he said.

--------------

Bykea, which leads the ride-hailing market in Pakistan, has raised $13 million in a new financing round as the five-year-old startup looks to deepen its penetration in the South Asian country and become a “super app.”

The startup’s new financing round, a Series B, was led by storied investment firm Prosus Ventures . It’s the first time Prosus Ventures has invested in a Pakistani startup. Bykea’s existing investors Middle East Venture Partners and Sarmayacar also invested in the round, which brings its total to-date raise to $22 million.

Bykea leads the two-wheeler ride-hailing market in Pakistan and also operates logistics delivery business and financial services business. The startup has partnered with banks to allow customers to pay phone bills and get cash delivered to them, Muneeb Maayr, founder and chief executive of Bykea, told TechCrunch in an interview.

Fahd Beg, Chief Investment Officer at Prosus Ventures, said firms like Bykea are helping transform big societal needs like transportation, logistics and payments through a technology-enabled platform in Pakistan. “Bykea has already seen impressive traction in the country and with our investment will be able to execute further on their vision to become Pakistan’s ‘super-app,” he said in a statement.


Bykea works with over 30,000 drivers who operate in Karachi, Rawalpindi and Lahore. (Two-wheelers are more popular in Pakistan. There are about 17 million two-wheeler vehicles on the road in the country today, compared to fewer than 4 million cars.)

The new investment comes at a time when Bykea restores the losses incurred by the coronavirus outbreak. Like several nations, Pakistan enforced a months-long lockdown to curtail the spread of the virus in March.

As with most other startups in travel business globally, this meant bad news for Bykea. Maayr said the startup did not eliminate jobs and instead cut several other expenses to navigate through the tough time.

One of those cuts was curtailing the startup’s reliance on Google Maps. Maayr said during the lockdown time Bykea built its own mapping navigation system with the help of its drivers. The startup, which was paying Google about $60,000 a month for using Maps, now pays less than a tenth of it, he said.

Starting August, the startup’s operations have largely recovered and it is looking to further expand its financial services business, said Maayr, who previously worked for Rocket Internet, helping the giant run fashion e-commerce platform Daraz in the country.

#SBP modernizes FX regulations to a) attract foreign investment in fintechs and startups thru holding companies; b) support exporters to establish presence abroad to promote Pakistani products; and c) allow residents to acquire sweat equity; and more:

https://www.sbp.org.pk/press/2021/Pr-10-Feb-21.pdf

SBP Modernizes Foreign Exchange Regulations to facilitate Start-ups, Fintechs and Exports
State Bank of Pakistan (SBP) has notified revisions in chapter 20 of the Foreign Exchange Manual to
facilitate Start-ups, Fintechs and Exports. The new policy for equity investment abroad will attract
foreign direct investment through the establishment of holding companies by Pakistani fintechs and
startups; support exports by facilitating exporters to establish subsidiaries or branch offices outside
Pakistan; and, allow resident Pakistanis to acquire sweat equity, amongst other changes to the Foreign
Exchange (FX) regulations. Further changes in the foreign exchange regulations will facilitate portfolio
investment in the country including mutual funds, Exchange Traded Funds (ETF) and Real Estate
Investment Trust (REIT) Funds through Pak rupee based Roshan Digital Account (RDA) and Special
Convertible Rupee Account (SCRA).
SBP, after approval of the Federal Government, has introduced three new categories of investment
abroad under its revised policy governing equity investment abroad and banks have been authorized
to allow remittances under newly introduced categories.
i. Establishment of Holding Company abroad by residents for raising capital from
abroad: Pakistan’s investment regime is quite liberal that allows full freedom to repatriate profit,
dividend and capital; however, some international investors prefer to invest indirectly through
holding company established abroad specially in the Fintech and Startup firms. SBP’s revised
policy will enable the Pakistani Fintech and startup companies to channelize foreign direct
investment in the country by establishing a holding company abroad against remittance of up to
USD 10,000 and subsequent swapping of shares to mirror the shareholding of local company in
the holding company.
ii. Establishment of subsidiary/branch office abroad by export oriented companies/ firms for
promoting exports: The policy will enable the export oriented companies to establish subsidiary/
branch office abroad against remittance of 10% of their average annual export earnings of last
three calendar years, or USD 100,000 whichever is higher. This will facilitate exploring new and
non-traditional markets and capturing more export orders, as international buyers prefer dealing
with subsidiaries/ representative offices of foreign companies present in their
country. Accordingly, the proposed policy would help in growth of export-oriented companies and
boost the exports of the country.
ii. Investment abroad by Resident Individuals: The policy will allow the resident Individuals of
Pakistan to acquire equity stake in international firms through share option plans or investment in
listed securities subject to observance of annual ceiling of foreign exchange defined in the policy.
In case of sweat equity a person can acquire upto twenty percent shareholding in a foreign
company. These policy provisions will provide opportunities to individuals to earn foreign
exchange for the country in the form of repatriation of dividend/ capital gains to Pakistan.

Investment in Mutual/Private Funds in Pakistan by Non-Residents:
With an objective to attract investment in the country, SBP has allowed the trading of units of funds
quoted at Stock Exchange, including Exchange Traded Funds (ETF), Real Estate Investment Trust (REIT)


https://www.sbp.org.pk/epd/2021/FECL1.htm
https://www.sbp.org.pk/epd/2021/FEC1.htm

SBP, after approval of the Federal Government, has introduced three new categories of investment abroad under its revised policy governing equity investment abroad and banks have been authorized to allow remittances under newly introduced categories.

https://propakistani.pk/2021/02/10/sbp-modernizes-foreign-exchange-...


1. Establishment of Holding Company abroad by residents for raising capital from abroad: Pakistan’s investment regime is quite liberal that allows full freedom to repatriate profit, dividend, and capital. However, some international investors prefer to invest indirectly through a holding company established abroad specially in the Fintech and Startup firms. SBP’s revised policy will enable the Pakistani Fintech and startup companies to channelize foreign direct investment in the country by establishing a holding company abroad against remittance of up to USD 10,000 and subsequent swapping of shares to mirror the shareholding of a local company in the holding company.

2. Establishment of subsidiary/branch office abroad by export-oriented companies/firms for promoting exports: The policy will enable the export-oriented companies to establish subsidiary/branch office abroad against remittance of 10 percent of their average annual export earnings of last three calendar years, or USD 100,000 whichever is higher. This will facilitate exploring new and non-traditional markets and capturing more export orders, as international buyers prefer dealing with subsidiaries/representative offices of foreign companies present in their country. Accordingly, the proposed policy would help in the growth of export-oriented companies and boost the exports of the country.


3. Investment abroad by Resident Individuals: The policy will allow the Resident Individuals of Pakistan to acquire an equity stake in international firms through share option plans or investment in listed securities subject to observance of the annual ceiling of foreign exchange defined in the policy. In the case of sweat equity, a person can acquire up to twenty percent shareholding in a foreign company. These policy provisions will provide opportunities to individuals to earn foreign exchange for the country in the form of repatriation of dividend/ capital gains to Pakistan.

Pakistan launches growth funds for startups

https://www.thenews.com.pk/print/787584-pakistan-launches-growth-fu....


The (IT) minister (Aminul Haq) said the overall environment in the country is improving. Bykea, one of the startups accelerated at NIC Karachi, has raised $21 million of Series B Funding.

Altogether, 122 deals worth $178 million were made from 2015-2020 in Pakistani startups including another 19 deals with amounts that were undisclosed. This brings the total deals count up 141.

-----------------

Asim Shahryar Husain, CEO of Ignite said 272 startups have graduated from Ignite’s National Incubation Centers with a total investment commitment of Rs8 billion and cumulative revenue of Rs3 billion. These nascent companies have created more than 100,000 new jobs and these numbers quantify the achievements of our five incubators in a short span of time. Ignite is planning vertical incubators and accelerators in future to boost the startup ecosystem of Pakistan.

Husain said the platform will be the first of its kind in and will aim to bridge the gap between entrepreneurs and national and international investors of all types including commercial and impact investors, donors and philanthropists.

The ministry and Ignite will invite various investors, donors and other investment/financial institutions to participate in the platform to consider business opportunities for financing, investments, supply chain commitments and networking. “It will be open to qualifying startups from all NICs and AP incubated and accelerated businesses across Pakistan. Under PakImpactInvest, first grand national pitching session of top 25-30 startups selected from all NICs and AP accelerated companies will be held in the last week of March 2021.”

In 2012, Pakistan’s start-up ecosystem had only two major
business incubators and accelerators – it has quickly evolved
since then.
By 2019, the country had 24 incubators and
accelerators and around 20 key investors
with many funds
catering to early stage start-ups.

https://twitter.com/bilalgilani/status/1385738041575227396?s=20

The era of VCs and boom of start-ups
Fatima S AttarwalaPublished March 8, 2021


https://www.dawn.com/news/1611254


“I have never seen as much genuine interest in writing cheques as I have in the last year,” says Kalsoom Lakhani, co-founder of the $15 million venture capital fund i2i Ventures. “There are so many international funds in Silicon Valley, East Asia, Middle East and other places that are realising that Pakistan is one of the most exciting places to come.”

Despite the pandemic, venture capitalist (VC) activities increased by 37 per cent to $65.6m in 2020 in Pakistan, explains Misbah Naqvi, co-founder of i2i Ventures. The fund is a sister concern of Invest2Innovate that was formed to support frontier markets in 2011 and acts as a pipeline of start-ups for i2i Ventures.

The lockdown speeded up sectors such as e-grocery, e-food delivery, fintech and edtech. International funds that have invested in similar companies in other markets have a much higher appetite to come into Pakistan as they already know what that model looks like, they explain.

In the last five years, over $200m has been raised by startups of which only about 3pc was towards female-founded or co-founded companies

They give the example TelloTalk, Pakistan’s first messaging platform in English, Urdu and regional languages. With close to 1.5m downloads and continuing to grow, the company has grown four times in terms of active user growth since i2i Ventures’ investment in 2019.


Understanding the VC model
In a traditional business model, the bottom line indicates the returns investors receive. In a VC model, investors make money when they sell their stake and exit the business. The exit can be in the form of an initial public offering, an acquisition, or it could be that the company is growing so fast, such as in the case of Careem and Uber, that more and more investors come in at later stages and buy the stake of initial investors.

“The whole idea of VC is to look at making 10x returns on your investments. The way VC works is that there will be a couple of unicorns that go on to become hundred-million-dollar companies, a few that will do pretty well and offer 3x to 5x returns, some that will just recoup the investment and then there will be those that will go bust,” outlines Ms Naqvi.

“It is a very high-risk asset class, especially in Pakistan where it is unproven,” says Ms Lakhani. “Since the space is really new, and exits require a five- to ten-year timeframe at least, it is too early to assess exits.”

A more mature market
There are several rounds of investments for startups. The first is when capital is raised by friends and family, followed by a pre-seed round that has angels and institutions involved. The seed level is when one starts seeing traction, after which the founders can raise either pre-seeds, Series A, up to Series A1. The Series A round of funding is when the company has figured out its product market and wants to, for example, grow to a few more cities. Series B and beyond is like putting fuel into the engine, explains Ms Naqvi.

“Considering the continuum, you can appreciate that a few years ago we were mostly seeing seed-stage deals. However, in the last year, we have had more series A deals in tandem with higher valuations of these companies.”

Criteria for funding
“We typically finance $100,000-200,000 in each investment,” they explain. Their process can take anywhere between four weeks to a few months, depending on how investment-ready the founders are.

The most important factor for the investing duo is the strength of the founding team. Secondly, they analyse the market opportunity — for example, a business in the organic food niche may be great but the opportunity would not be as large as say e-groceries. The third factor is traction — the partners don’t invest in a company that is just an idea.

#Karachi-based startup Trukkr raises $600,000 seed for its trucking marketplace in #Pakistan. It helps businesses transport their goods across Pakistan using its network of vetted transporters who match users' needs. #transport #freight https://www.menabytes.com/trukkr-seed/ via @MENAbytes


Karachi-headquartered trucking marketplace Trukkr has raised $600,000 in seed funding led by Peter Findley, it told MENAbytes today. The investor is a General Partner at Anchorless, a New York-headquartered VC focused on Bangladesh. The deal also included participation from Pakistan-focused investor Kinnow VC, Kargo Technologies’ founder and CEO Tiger Fang, and executives from Cue Health. In addition to the equity investment, the startup has also raised an undisclosed amount of money in debt financing.

Founded in 2020 by Sheryar Bawany, Waqas Khatri, Ali Haji, Mishal Adamjee, and Kasra Zunnaiyer, Trukkr helps businesses transport their goods across Pakistan using its network of transporters. Its marketplace features vetted transporters and truck drivers and matches loads in real-time, with transparent (and fair) pricing for both the parties. Since its launch, the startup claims to have served 20,000 trucking movements for different businesses in Pakistan including leading large corporations like Artistic Milliners, Ittehad Chemicals, and Master Group.

Trukkr has also built a dedicated logistics management platform that can be used by companies to manage their fleet, clients, and transporters. The platform is completely free-to-use for Trukkr’s customers.

There are at least ten local and regional online trucking marketplaces operating in Pakistan. Speaking about how they’re different, Trukkr’s co-founder Waqas Khatri told MENAbytes that their tech is world-class and is being used by some of the largest corporations in the country, “They’re not only using our marketplace to move their goods all over Pakistan but our online software as well to manage their entire logistics operations.”

Peter Findley seems to agree with the bit about tech, “Trukkr’s technology is top in a category not just in Pakistan but also in global markets. Its management team has a great understanding of how to implement the freight solution. Their knowledge of graph theory allows them to understand routes in a manner that minimizes waste. This leads to an ability to improve the carbon footprint of the trucking industry and also their partners.”

Prior to starting Trukkr, its co-founder Sheryar Bawany used to lead a logistics company in Karachi. After doing that for ten years, he teamed up with his co-founders to solve the inefficiencies in the local trucking industry using tech, “With an experienced operations team led by the founders, and a strong, comprehensive and localized tech platform built in house, we have completed more than 20,000 trips since we started operations in 2020, and the positive response from our customers has been overwhelming,” he stated in a conversation with MENAbytes.

Faaez Ul Haq from Kinnow VC said, “We are thrilled to invest in Trukkr as they take on the massive opportunity that the Pakistani freight market represents. We looked at several players in this space, and the Trukkr team stood out for their deep expertise, ability to quickly execute, and a rich product offering.”

The startup plans to use the latest funds to further enhance its technology and expand its operations.

#Pakistan's #tech ecosystem is finally taking off. In 2021, Pakistani #startups are on track to raise more money than the previous 5 years combined. This capital is coming from investors from #Asia, #MiddleEast & top #SiliconValley VCs.
https://tcrn.ch/2TEwRR0 via @techcrunch

https://twitter.com/haqsmusings/status/1412922307438268416?s=20


Pakistan, the world’s fifth most populous country, has been slow to adapt to the internet economy. Unlike other emerging economies such as China, India and Indonesia, which have embraced digitization and technology, Pakistan has trailed the region in the adoption of technology and startup formation.

Despite this, investors have dreamed for years of the huge opportunities in unlocking Pakistan’s potential as a digital economy. As a country of 220 million people, almost two-thirds of whom are under the age of 30, Pakistan draws natural comparisons to Indonesia — which has rapidly emerged as one of the most vibrant technology ecosystems outside the U.S. and China.

After years of lagging behind, over the course of the past 18 months, Pakistan’s technology ecosystem has come to life in unprecedented fashion. In 2021, Pakistani startups are on track to raise more money than the previous five years combined. Even more excitingly, a large portion of this capital is coming from international investors from across Asia, the Middle East and even famed investors from Silicon Valley.

The rapid emergence of Pakistan’s technology ecosystem on the international stage has been no accident — it’s the result of a confluence of changing facts on the ground and shifting dynamics in the startup and investing world as a result of the pandemic.


The sudden emergence of Pakistan’s tech ecosystem on the international stage has been driven by three major factors: an improving security situation, quickly growing mobile connectivity, and critical legal changes and deregulation.

As a frontline state and coalition partner in the United States’ invasion of Afghanistan, Pakistan saw fatalities from terrorist violence soar from 295 in 2001 to a peak of over 11,000 in 2009. This climate of instability and violence scared away international business and investors from Pakistan for much of the first two decades of the 21st century.

#Pakistani #fintech Dastgyr raises $3.5 million in seed round. #Karachi-based B2B marketplace aims to connect over 2 million underserved #retailers directly to manufacturers, distributors, and wholesalers to fix what is currently a fragmented supply chain https://www.dawn.com/news/1637048

On top of further building the tech stack and expanding the already 280-odd team, “the funds will be deployed towards officially launching new fintech solutions that Dastgyr’s team has already been experimenting with, including ‘Buy Now Pay Later’.

Its fintech products will strive for financial inclusion of the retailers that Dastgyr aims to serve, the majority of whom remain unbanked. "Access to financing options will ultimately enable them to have more purchasing power and expand their businesses to include more categories, improve store capacity, or purchase new equipment like refrigerators and shelves,” the press release states.


Founded in 2020 during the height of Covid-19, Dastgyr is a B2B marketplace app that enables retailers to order wholesale inventory of over 2,000 stock-keeping units (SKUs) with guaranteed next-day delivery and telephonic helpline support. Product categories on the app include fast-moving consumer goods, stationery, mobile accessories, and more. The startup claims to have grown the gross merchandise value 7x between September 2020 and July 2021, while boasting 5,240 daily active users on the app.

SME retailers are the backbone of Pakistan’s economy, representing a combined market of roughly $125 billion dollars, about 30-40 per cent of the country’s GDP. Dastgyr aims to empower and uplift this segment with a near-perfect supply chain and financial inclusion to increase that contribution even further, the press release states.

In addition to SOSV, the round also included ADB Ventures, the Asian Development Bank’s venture capital arm, Seedstars, and Edgebrook Partners, marking their first investments into the Pakistan market. Strategic institutional and angel investors from the MENA region also participated, including Zayani Venture Capital and Tricap investments.


“Pakistan is seeing the same patterns as India five years ago and China 10 years ago: with 75pc of the population owning a smartphone, the first-movers in mobile-first services will be the winners. We are particularly impressed with Dastgyr’s culture of growth: the company’s fintech offering is truly a game-changer for the unbanked and underbanked while ensuring the success of their businesses. We are particularly impressed with the company’s culture of growth and are proud to have the company as part of our portfolio,” said William Bao Bean, General Manager at SOSV and Managing Director of MOX.

Dastgyr’s asset-light model functions on a cross-docking approach: goods are delivered to sorting centres, sorted into individual orders and routes, and are then dispatched to retailers. Currently operational in both Karachi and Lahore after its official launch in September 2020, it has fulfilled hundreds of thousands of orders worth millions of dollars to roughly 30,000 customers.

Dastgyr hasn’t raised an incredibly large dollar amount in this seed round, but its management has been conscientious about ensuring that their deployment of capital remains exceedingly efficient. Its current investment to gross merchandise value (GMV) ratio is $1 into $58.

Dastgyr’s team includes former members of some of the region’s fastest growing startups, including Daraz (Rocket Internet venture acquired by AliBaba), Careem (acquired by Uber), and Airlift (raised Pakistan’s largest Series A at the time led by First Round Capital).

@FaseehMangi: Pakistan’s startups fund raising is going through the roof. Record $101 million in the first half of this year compared with $65.6 million in the whole of 2020 https://twitter.com/FaseehMangi/status/1420013252981964805?s=20 Pakistan’s Keenu Eyes IFC backing as startups raises record funds – Bloomberg (Bloomberg) -- Wemsol Pvt., known as Keenu, is looking to raise as much as $5 million from the International Finance Corporation that would extend a record fundraising spree by Pakistan’s startups. The Karachi-based company, which makes point-of-sale debit and credit card machines, will use the money to expand its network, Chief...

IFC board to consider the investment proposal by end of August
Keenu is only non-bank in Pakistan POS payments space
Wemsol Pvt., known as Keenu, is looking to raise as much as $5 million from the International Finance Corporation that would extend a record fundraising spree by Pakistan’s startups.

https://www.bloomberg.com/news/articles/2021-07-27/pakistan-s-keenu...

The Karachi-based company, which provides point-of-sale debit and credit card machines, will use the money to expand its network, Chief Executive Officer Syed Ejaz Hassan said in an emailed reply. The company is also planning to create consumer and merchant wallets and will seek a license from the central bank, according to Numero Advisors, arrangers to the transaction.


Pakistan’s startups have raised a record $101 million in the first half of this year compared with $65.6 million in the whole of 2020, with most going to e-commerce and financial technology firms, according to a tracker from venture capitalist fund Invest2Innovate. The South Asian nation has the third-largest unbanked adult population globally, with about 100 million adults without a bank account, according to World Bank data.

IFC’s board will consider the investment proposal by end-August, the World Bank’s finance arm said by email. It added that the project would help Keenu expand its network toward small businesses.

Keenu is the only non-bank in the point-of-sale-space, with about 10,000 machines or 30% of total market share, according to Numero Advisors.

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Digital technologies are set to transform the way people live and work in Pakistan. As we saw in the GSMA 2020 Digital Societies Report, which tracks the progress of 11 focus countries in Asia Pacific, Pakistan is advancing its societal, economic and digital ambition, as outlined in Digital Pakistan Vision. Indeed, our report’s digital society index tracked Pakistan in achieving one of the highest increases in its overall score.

https://dailytimes.com.pk/798868/pakistans-digital-transformation-2/


By 2023, the economic contribution of the mobile industry in Pakistan is expected to reach $24 billion, accounting for 6.6% of GDP .In an effort to stimulate this growth, Pakistan has recently moved forward with significant mobile services tax reforms.

Digital platforms, such as mobile services, have become the primary channel for a growing number of citizens to access public and private services, especially during the pandemic. Behind this development are the vital roles played by National and provincial policymakers, the Pakistan Telecommunication Authority (PTA) and Ministry of Information Technology and Telecommunication (MoITT), who have helped increase access for citizens high-quality connectivity and digital services. This has cultivated digital inclusion, e-commerce and a general entrepreneurial spirit for the people of Pakistan.

With a population of approximately 220 million, and more than 100 million people under the age of 25, Pakistan is well positioned to play a growing role in the global economy over the next decade.Pakistan’s mobile market has experienced rapid development over the last decade, playing a significant role in Pakistan’s growth. In 2018, the total economic contribution of the mobile ecosystem was worth $16.7 billion, equivalent to 5.4% of GDP.

In a post pandemic world, Industry 4.0 – otherwise known as the fourth industrial revolution – will help economies recover and become more resilient to future shocks. And technology, supported by mobile networks, will be at the core of Pakistan’s industrial development as it works to launch the fourth industrial revolution.

Pakistan’s recent policy actions offers a glimpse of this potential. But authorities must act together, creating the business environment necessary to realise these goals. A whole-of-government (WGA) approach will ensure better coordination of digital transformation initiatives across the public sector, complemented by private sector investment and innovation. We believe this holistic approach is a way for emerging and transition digital societies to leapfrog bureaucratic pain points.