According to the H1 report by Magnitt, titled “Pakistan Venture Investment 2020 Snapshot,” Pakistani startups have raised $18 million in the first six months of 2020.
Overjet, an AI-driven dental startup, secured the biggest funding worth $7.8 million. Besides, Tajir received $1.8 million and Bazar $1.3 million while Mandiexpress and Healthwire each raised $700,000 during seed funding rounds.
Dubai-based Magnitt is the biggest startup platform in the Middle East and North Africa (MENA) region. It provides entrepreneurs a platform to connect with funders, mentors, support services, and talent.
E-commerce and healthcare startups have received the most funding primarily due to increased demand following the Coronavirus outbreak in the country in late February. Startups focusing on advertising and marketing, technology, and data analytics also raised significant investment during the first six months of 2020.
The report states that:
COVID-19 accelerated the adoption of digital technologies across Pakistan, evidenced in increased investment in both e-commerce and healthcare.
A young population with a median age of 23 and more than two-thirds of the population aged below 30, a growing middle class, and an ever-expanding 3G/4G connectivity have proven conducive for the Pakistani startup ecosystem.
Between January to June 2020, Pakistani startups have signed 17 deals worth $18 million, an increase of 13% against that of the same period last year.
Each disclosed deal averages $1.1 million, up 51% in comparison to the first half of 2019.
When compared with the overall investment secured in 2019 during the same period, Pakistan Venture Investment 2020 Snapshot shows an increase of a whopping 63%.
Around 29 venture capital (VC) firms invested in Pakistan in 2020, with 76% of those being international investors.
Via: The National