MAGNiTT released H1 report named “Pakistan Venture Investment 2020 Snapshot,” in which Dubai based platform revealed that investment in Pakistani startups has reached $18 million in the first six months of the year 2020.
An Artificial Intelligence based startup called Overjet obtained the highest funding worth $7.8 million and then comes Tajir which secured $1.8 million and Bazaar received $1.3 million, whereas Healthwire and Mandiexpress both gathered $0.7 million through seed funding rounds.
Read more: Safepay and Byte become first two Pakistani startups to receive support of Y Combinator
Lahore based online grocery delivery service startup named GrocerApp also raised $1 million in a seed round led by Jabbar Internet Group. This was the first investment in Pakistan by the group as the company won big in Dubai based grocery startup InstaShop.
The Magnitt which is a Dubai based startup, is the biggest startup program in the Middle East and North Africa (MENA) zone. The platform is the best source to connect with counselors, support services, donors and talent-oriented personnel.
Due to the coronavirus pandemic the, e-commerce and health care sector became the center point of funding as these sectors have strong demand in the country. Startups who also focused on promotion, marketing and advertising, technological product and data analysis field also managed to grab investment from investors in the early months of 2020.
The report details the Investment in Pakistani Startups
“COVID-19 accelerated the adoption of digital technologies across Pakistan, evidenced in increased investment in both e-commerce and healthcare”.
Pakistan is the country that is having more younger generation than senior citizens. In Pakistan, the average median age of the citizen is 23 years, according to reports more than two-thirds of the residents are aged below 30. In the country, an ever-expanding 3G and 4G LTE have been very favorable for the Pakistani startup environment.
From first January to June 2020, the Pakistani based startups have contracted 17 agreements which are worth $18 million, this is the 13 percent increase in the flow of the investment as compared to last year.
After linking with an overall investment that was gained in 2019 you will find a whopping 63 percent increase according to Pakistan Venture Investment 2020 Snapshot. Around 76 percent of the investors are International stockholders and about 29 venture capitalists (VC) invested in Pakistan only in the 2020 season.
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