Welcome to Notes on Pakistan
A newsletter on all things tech and venture in Pakistan (and sometimes MENA!)
I’m starting an email newsletter!
I know, I know, soooo 2021. But hear me out. Tech and venture across emerging markets is taking off. In Pakistan alone, 2021 saw $350m+ invested in venture-backed startups, more money than the aggregate venture funding to ever enter the country. At the risk of sounding like every other investor in Pakistan, the 220m+ people who are overwhelmingly young, educated and digitally native are finally seeing a digital transformation.
Pakistan is not alone, MENA saw closer to $2.5b in venture funding in 2021. Much of this funding is going towards international expansion with Pakistan often playing a leading role in the story. Leading global investors have also begun to pay attention with funds including First Round, Prosus, Tiger Global, and more making their first investments into Pakistan and in the process, validating much of the hard work local entrepreneurs and funds have been doing for years now. Aatif Awan of Indus Valley Capital published a comprehensive piece at the end of 2021 covering the progress so far - you can check it out here.
Undoubtedly, 2022 is set to be an even more exciting year. While the number of deals may slow down, it’s likely the average deal size will be significantly higher as we see many of 2021’s star startups raising Series A and B rounds. There will likely be participation from additional global Tier 1 funds and new strategic investors. With more funding will come fiercer competition and a flurry of M&A activity. Unavoidably, some ventures will struggle to raise their next round and shut down or be acquired.
However, Pakistan still remains on the global periphery of the venture landscape. One of the most undercapitalised countries for its population and potential, the ecosystem is still developing. It is almost certain that the future of Pakistan is brighter than its past - at least optimists like myself see it this way, and I’m keen to document that journey.
Wait, who are you again?
Good question. I’m a former startup founder, VC analyst, and McKinsey consultant. I’ve had professional experience in three countries in the region and have seen the landscape from a range of perspectives. As of December 2021, I’ve relocated to Pakistan to join a startup and participate as an ‘operator’. What a funny word. I’m not a doctor, I’ve just taken a new job! But I’m confident that it will bring another perspective into the mix as I explore the landscape.
And why are you writing this?
One of my key aims for 2022 has been to improve my writing. Writing forces me to clarify my thought processes and allows me to connect with others who spend their time thinking about tech trends, venture capital, and startups in the region. I also believe that there is much room for debate and discussion as the broader tech landscape forms.
Menabytes, the go-to source for news on venture in the region, has long done a great job reporting on deals. Similarly, i2i has a highly reputable dealflow tracker and regularly publishes some of the most insightful sectoral analysis in Pakistan. More recently, the team at Techshaw has upped their email newsletters and has launched an exciting new podcast. Alongside these voices, I believe that there remains space for much more discussion as the Pakistani tech ecosystem develops.
Whether you’re a local investor, budding entrepreneur, member of the diaspora, or a regional CEO looking to expand into Pakistan, I hope that through these weekly(ish) notes, you’ll be able to keep a pulse on the landscape and participate in an emerging dialogue.
I’ll be rounding up the latest news each week and following it up with a longer-form piece, normally on one of the following themes:
Industry commentary
Business breakdowns
Investment memo style theses
Interviews with founders and investors
If you’re interested in following along hit subscribe! 👇👇👇
Looking forward.
Fantastic Rabii!