Pakistani startups are increasingly focusing on expanding into the Gulf region, driven by ongoing economic challenges at home, including macroeconomic instability, political issues, currency depreciation, and reduced purchasing power. This shift is not just a strategic move but is becoming essential for growth and sustainability.
Recent funding activity highlights this trend. Notable startups like PostEx and MYCO have secured significant investments aimed at breaking into the Middle Eastern market. For instance:
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- PostEx, an e-commerce logistics and financial services startup, raised $7.3 million in a Pre-Series A round led by Conjunction Capital, with participation from other notable investors such as DASH Ventures, Sanabil500, Vsquared Ventures, FJ Labs, and Zayn VC. This brings PostEx’s total funding to $15.9 million, enabling further expansion and innovation.
- MYCO.io, a Web3 video streaming platform, successfully closed a $10 million Series A round with backing from a diverse range of investors, including Daman Investments, Aptos Labs, B Digital, MOCHAVentures, ART3F Foundation, Ghaf Capital Partners, Mix Media Network, Factor6 Capital Partners, and Enjinstarter. This funding will support MYCO’s continued growth and innovation in the video streaming space.
The trend of regional diversification is seen as a strategy to mitigate domestic economic issues and attract foreign investors. In the third quarter alone, four out of six startup deals involved expansions into the Gulf or other markets. This increased funding reflects a broader recognition of the importance of expanding into more stable and lucrative regions.
The report from i2i Venture indicates that if this momentum continues, it could provide significant opportunities for both new and existing startups in Pakistan, offering a glimmer of hope for the country’s entrepreneurial ecosystem.
