Pakistani Startups Eye Expansion into Gulf Region

Pakistani startups are eyeing expansion into the Gulf with renewed vigor–and for good reasons, according to a report released by i2i Venture. With the ongoing macroeconomic woes, political instability, currency depreciation, and decreasing purchasing power, founders are realizing that spreading their wings beyond the country isn’t just a smart move, but a necessity. This shift in focus is reflected in the recent uptick in funding deals, with companies like PostEx and MYCO raising significant capital to break into the Middle East. The increase in funding not only provides the much-needed capital for expansion but also reinforces the importance of regional diversification as a strategy to weather domestic economic challenges. In a year that’s seen just six deals so far, In the third quarter alone, four deals were recorded among startups, and three of these involved startups expanding into the Middle East or elsewhere. This brings us back to the common perception that expansion attracts funding, said the report. Ever since the closure of multiple startups and the funding crunch that followed it, the report assessed this trend of regional diversification continuing in the hopes of attracting foreign investors and affluent spenders in those markets. Postex, the e-commerce logistics and financial services startup, has just secured $7.3 million in a Pre-Series A round. The round was led by Conjunction Capital, with participation from DASH Ventures, Sanabil500, Vsquared Ventures, FJ Labs, and Zayn VC. This latest funding brings PostEx’s total capital raised to an impressive $15.9 million. Keep an eye on this startup as it continues to scale and innovate within the industry, the report added. yco.io, a Web3 video streaming platform, has successfully raised $10 million in a Series A round. This impressive round saw support from a diverse group of VCs and angel investors, including Daman Investments, Aptos Labs, B Digital, MOCHAVentures, ART3F Foundation, Ghaf Capital Partners, Mix Media Network, Factor6 Capital Partners, and Enjinstarter. With this boost, Myco.io is set to continue its rapid growth and push the boundaries of innovation in the video streaming space. Looking ahead, the momentum gained during the third quarter which offers a glimmer of hope for Pakistan’s startup ecosystem. If the current momentum is sustained, the report sees new startups raising money and existing ones breaking new ground.