Pakistan Startup 2021 Report

Venture Capital Funding in Pakistan 2021
‘2021’ REMEMBER THE YEAR

STELLAR FOR PAKISTANI STARTUPS
December 2021
Copyright © 2021 KTrade Securities, Inc. All rights reserved. 1
Disclaimer Venture Capital Funding in Pakistan 2021
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investment funding and deals herein have been mainly obtained from invest2innovate, Techshaw and other sources that we believe to be reliable and complied by our
Corporate Finance department in good faith. The report only contains data, statistics and analysis for the disclosed deals and deals having certain undisclosed and unreliable
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2
EXECUTIVE SUMMARY Venture Capital Funding in Pakistan 2021
While the recent streak of surge in VC funding in Pakistan’s startups is phenomenal and positive for the ecosystem’s growth, the best is
yet to come
Investment Trends in Pakistan VC Funding in Pakistan Top Funded Sectors of 2021

1 5 81 28 5 7 42 60 324
▪ Since 2013, both foreign and local VC Funds
$ Mn
3 4 17 14 13 14 21 31 59
have invested over USD 552Mn. While over
#
FinTech
400 80 Health
USD 324Mn (disclosed) came in 2021 only. 26%
5%
300 60 Others
▪ Ticket size per stage is on the rise; Average 200 40 5%
Deal Size has increased 2.8x to USD 5.5Mn. 100 20 Transport

0 0 E-Commerce 7%
▪ Airlift raised highest venture funding of USD 2013 2014 2015 2016 2017 2018 2019 2020 2021 57%
85Mn in a Series B round while Tazah closed Amount (USD mn) # of Deals - rhs
highest pre-seed deal of USD 6.5Mn.

All Time Notable Investors All Time Notable Deals
▪ With 19 disclosed deals & over USD 180 Investor Disclosed Deals Type Startup Funding (USD Mn) Stage
Mn in funding, E-commerce became the Indus Valley Capital 85 Series B
12 Local
hottest sector both value and volume wise
Fatima Gobi Ventures 12 Local 55 Series A
in 2021. And FinTech has over 1/4th of the
Zayn Capital 11 Local 30 Series A
VC investment this year. Under “fintech
Sarmayacar 10 Local 20 Series C
revolution”, startups are finding investors
eager to tap 3rd most unbanked economy. Global Founders Capital 10 Foreign 17 Series A
Lakson Investments Venture Capital 9 Local 15 Seed
▪ Severe startups under-funding in Pakistan, Shorooq Partners 8 Foreign 13 Series B
coupled with emergence of digitalization i2i Ventures 6 Local 12 Seed
and recent interest from foreign VCs will Y Combinator 6 Foreign 12 Series A
continue the thriving investment climate.
Karavan 6 Local 11 Pre-Series A
Source: KTrade Analysis, i2i Ventures, Techshaw, Market Research 3

Pakistani Ecosystem
Economic Flashback
01 Venture Capital Funding in Pakistan 2021
Digital Ecosystem
Capital Market Perspective
Startup Space Overview

Impact of COVID 19
02
VC Funding VS Recent IPOs
Bird’s Eye View of the VC Funding
What Happened in 2021?

Funding Analysis
03 TABLE OF
CONTENTS
Top 10 investments for 2021
Deals & Investors Landscape
Sector-wise Investment Trends

Startup Ecosystem in Pakistan
04
Hottest Sector
Sector-wise overview
Future of Venture Funding

Turnaround of the startups
05
Key Development within the startup ecosystem
Expectations for the coming years
How can we help Startups?

How KTrade can help startups
06
Ktrade Stock Trading App 4
PAKISTANI ECOSYSTEM
5
ECONOMICOVERVIEW
ECONOMIC FLASHBACK Venture Capital Funding in Pakistan 2021
Overview Economy Snapshot Pakistan’s Real GDP Growth

▪ The IMF estimates, Pakistan’s real Gross FY16 FY17 FY18 FY19 FY20 FY21 4.6%
5.2% 5.5%
4.5%
5.0% 5.0% 5.0%
Domestic Product (GDP) to grow by 4%, 4.1% 4.0%
4.5% & 5% in FY22, FY23 & FY24 to FY26 Population Mn 204 208 212 217 221 227* 2.1%
3.9%
respectively. With effective micro-
GDP (USD Bn) 279 305 315 282 263 299
lockdowns, record-high remittance inflows
and a supportive monetary policy, Pakistan’s Real GDP Growth 4.6% 5.2% 5.5% 2.1% -0.5% 3.9%
economic growth rebounded sharply. -0.5%
Policy Rate 5.8% 5.8% 6.5% 12.3% 7.0% 7.0%
FY 22
FY 23
FY 24
FY 25
FY 26
FY15
FY16
FY17
FY18
FY19
FY20
FY21
▪ Pakistan is the 5th most populous country
making up 2.83% of the world’s population. FDI (USD Bn) 2.4 2.4 2.8 1.4 2.6 1.9 Actual IMF Estimate
▪ Over the last 5 years, Foreign Direct *Estimate
Investment (FDI) in Pakistan ranged from FDI in Pakistan (USD bn) Remittances (USD bn)
USD 2.8Bn to USD 3.5Bn. In FY21, FDI
declined to USD 3Bn due to the pandemic 3.5 3.3 29
which restricted global spending and 3.3 3.1 3.0
2.8 2.8 2.8
investments around the world. The FDI is 2.7
22 23
19 20 19 20
back on track, as in Sep 2021, FDI reached its 2.1
16
14
11-month high of USD 306Mn. Moreover, 1.2
13 13
FDI for the first 5 months of FY22 reached
USD 1.2Bn.
▪ Pakistan's remittances grew significantly by
FY 12
FY 16
FY 13
FY 14
FY 15
FY 16
FY 17
FY 18
FY 19
FY 20
FY 21
FY 12
FY 13
FY 14
FY 15
FY 17
FY 18
FY 19
FY 20
FY 21
5M FY 22
5M FY 22
27% in FY21, marking the fastest growth in
the past 18 FYs, rising to USD 29.4Bn.
Source: KTrade Analysis, Worldometers/United Nations, SBP, Euromonitor International, World Economic Outlook by IMF 6
DIGITAL ECOSYSTEM Venture Capital Funding in Pakistan 2021
Digital Adoption on the rise in Pakistan providing a big opportunity for the startups to revolutionize the traditional processes in various
sectors
Total Mobile 3G/4G Unique Active Social

Population Connections Subscribers Internet Users Media Users
227Mn 188Mn 107Mn 47Mn 46Mn

URBANISATION VS. POPULATION VS. POPULATION VS. POPULATION VS. POPULATION
37.3% 82.8% 47.1% 20.7% 20.%
Annual Change Annual Change Annual Change Annual Change Annual Change
+2.0% +4.2% +18.2% +21.0% +24.3%
+4.3 Million +6.9 Million +16.2 Million +11.0 Million +9.0 Million
Source: Worldometers / United Nations, Euromonitor International, PTA 7

ECONOMIC
CAPITAL OVERVIEW
MARKET PERSPECTIVE Venture Capital Funding in Pakistan 2021
Overview 2021 Equity Listings (USD Mn) Tech Sector’s Performance

600%
▪ Pakistan Stock Exchange (PSX) witnessed 8 39 KASB Tech Index KSE-100
equity listings in 2021 raising +USD 120 Mn. 29
500%
* KASB Tech Index Includes:
400% Systems Limited, NetSol
▪ PSX launched a Growth Enterprise Market 16 15 14 Technologies, Avanceon
(GEM) board for early stage and growth 7
3
300% Limited, TRG Pakistan
1 Limited, TPL Trakker
companies. Which witnessed 2/8 equity 200% Limited
listings in 2021. It is expected that similar
Panther Tyres
Citi Pharma
BlueEX
Packaging
Air Link
PABC
Service Global
Octopus Digital
Pak Agro
100%
growth indices in other countries, this will
Footwear
attract several new listings. 0%
Jan-20
Jan-21
Sep-20
May-20
May-21
Sep-21
Jul-20
Nov-20
Jul-21
Nov-21
Mar-20
Mar-21
-100%
▪ Even latest tech Initial Public Offering (IPO)
of Octopus Digital got oversubscribed by 27
times in book building and upper capped Valuations (KSE 100 vs Tech Tech Companies Weightage on
(+7.5%) for first 9 trading days. Airlink Sector) – Price/Earnings PSX
Communications also raised USD ~39 Mn in
Market Cap
largest private sector IPO. 32.79 32.16
(PKR Mn)
Weightage
* TRG’s P/E ratio is not
available due to a
▪ Pakistan’s Tech Sector gave a return of 24.44
one-off sale of its KSE All Market Cap 7,559,491 100%
343% since 2020 as compared to 5.9% subsidiary SYS 105,082 1.39%
return by KSE 100 Index. ** TPLT is in negative
earnings NETSOL 8,378 0.11%
▪ The Tech Sector commands much higher 6.5
AVN 23,140 0.31%
valuations (more than double) as compared TRG 64,574 0.85%
to KSE 100 Index. N/A N/A
TPLT 2,992 0.04%
KSE 100 SYS NETSOL AVN TRG* TPLT**
Source: KTrade Analysis, Pakistan Stock Exchange 8

STARTUP SPACE OVERVIEW
9
COVID 19 AND STARTUPS Venture Capital Funding in Pakistan 2021
COVID 19 came and became a

shock for the whole world and
impacted Consumer Dynamics
Technology Boom
everywhere including Pakistan
E-Commerce FinTech
Causing
Health Tech EdTech
Lockdowns and business closures
Transportation Media
Social distancing measures
New and innovative business models emerged catering to the
Increased need for hygiene and consumer dynamics caused by COVID 19
healthcare
Outcomes
Need for alternatives to traditional
retail
✓ Investor Interest and Increased Investment
Need for online education ✓ Entrepreneurship Boom
✓ Job Creation
✓ Economic Growth
Increased noncash transactions ✓ Improved and healthy business community
✓ Innovation lead improvement in standard of living
10
VC FUNDING VS Venture Capital Funding in Pakistan 2021
RECENT IPOS
Startup financing increased in the backdrop
of Covid-19, as they presented technology-
Interestingly total disclosed VC funding
based business models to facilitate people by startups is standing over 2.6x of the
amid lockdowns. total funding (over USD 123 Million)
raised through all 6 IPOs and 2 GEM
Listings during in PSX
Venture Capitalist Funding in Pakistan has
been booming rapidly at a CAGR of 114%
since 2013.
In 2021, startups raised record high

investment, even more than what the country
has attracted cumulatively over the past
Even the single largest private sector eight years.
IPO in Pakistan raised USD 36 million
could not surpass the single VC funding
round of USD 85 Million. Majority of the investments were backed by
foreign investor alone taking the total
funding to more than what companies raised
Source: i2i ventures, Techshaw, KTrade Analysis at PSX in 2021. 11

BIRD’S-EYE VIEW OF VC Venture Capital Funding in Pakistan 2021
FUNDING Higher Ticket Size is the Main Reason Behind the Surge
Funding (USD Mn) Number of Deals Number of Investors
117 147
324
228
59
143
2013-20 2021 2013-20 2021 2013-20 2021
USD 324Mn Average Deal Size (USD Mn)

5.48
4.78
USD 5.48Mn
51 Companies 1.97 2 1.94
1.16
0.4 0.5
0.25
59 Deals 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: i2i, ventures Techshaw, KTrade Analysis *All figures mentioned are exclusive of undisclosed deals 12
WHAT HAPPENED IN 2021?
13
NUMBER OF DEALS FUNDING RAISED SINCE 2021 AVG DEAL SIZE IN 2021
59 USD 324 Mn USD 5.5 Mn

YEAR 2021 IN A GLIMPSE
SECTOR WISE ANALYSIS FOR 2021 (USD Mn) QTRLY & YRLY COMPARISION
E-commerce 182
FinTech 84
Transportation 24
HealthTech 15
AgriTech
EdTech
AdTech
2.5
2.7
9
198% 438%
YoY Increase YoY Increase
Media 2.4 in Q4 2021 in 2021 from
Human Resources 1.4 from Q4 2020 2020
Travel 0.3
QTRLY FUNDING INVESTMENT STAGE (DEALS) COMPANY VINTAGE (USD MN)

20% 6% 1
10 12
One to Three Years 270
20%
59 3
More than Five Years 22
Deals
Three to Five Years 17
33
54%
Pre-Seed Seed Pre-Series A
Less than One Year 15
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Series A Series B
Source: i2i venture, Techshaw, KTrade Analysis *All figures mentioned are exclusive of undisclosed deals 14
QUARTERLY FUNDING Venture Capital Funding in Pakistan 2021
ANALYSIS
Exponential Growth In VC Funding
USD 240Mn
Total investments were raised in 2H 2021
Quarterly VC funding continued its rising trend with an average growth of 33.3% each quarter. If the across 31 unique deals
anormal single funding round of Airlift is removed from Q3,
161% HoH
Increase in Avg. Deal Size to USD 7.7
200 18
174.5 Mn in H2 as compared to USD 3.0Mn in H1
180 16
160
16 16 14 USD 174Mn
140 15 12 VC funding peaked in Q3 2021 after a slow
120 start with USD 19.8Mn in Q1
12 10
100
80 63.3 65.9 8 198% YoY
6 Increase in Q4 total investments as
60
compared to Q4 2020
4
40 19.8
20 2 16 Deals
0 0 Were closed in Q2 & Q4 are the highest
Q1 Q2 Q3 Q4 number of deals occurred in any quarter
Funding in USD Mn (LHS) Deals (RHS)

123% YoY
Increase in Avg. Deal Size to USD 4.1Mn in
Source: i2i venture, Techshaw, KTrade Analysis *All figures mentioned are exclusive of undisclosed deals Q4 2021 with just 16 deals 15
SUCCESSFUL DEALS FOR 2021 Venture Capital Funding in Pakistan 2021
E-Commerce FinTech
Health Transport AgriTech Others
Source: i2i venture Techshaw, KTrade Analysis 16

TOP TEN INVESTMENTS Venture Capital Funding in Pakistan 2021
IN 2021 Startup Funding (USD Mn) Sector Investors
85 E-Commerce 20 VC, Buckley Ventures, Quiet Capital, Indus Valley Capital
VC Defy Partners, Wavemaker Partners, Acrew Capital, Global

30 E-Commerce Founders Capital, Indus Valley Capital, Next Billion Ventures,
Alter Global
Kleiner Perkins, Y Combinator Continuity Fund, AAVCF, Fatima
17 E-Commerce Gobi Ventures, Flexport, Golden Gate Ventures, Liberty City
Ventures, Venture Souq
MSA Capital, Global Founders Capital, Fox Ventures, First Check
15 FinTech
Ventures
Liberty City Ventures, Canaan Partners, Addition, Mantis, Banana
12 FinTech
Capital
Tiger Global, Better Tomorrow Ventures, Firstminute Capital,
11 FinTech
Banana Capital, VentureSouq, Ratio Ventures, i2i Ventures
Harry Stebbings’ 20 VC, Josh Buckley’s Buckley Ventures, Indus
10 Transportation
Valley Capital
8.5 HealthTech 500 Startups, Sarmayacar
Zayn Capital, Lakson Investments Venture Capital, Hayaat

7.5 E-Commerce Global, BY Ventures, Jabbar Internet Group, Millville
Opportunities Fund, Mentor’s Fund
7.2 FinTech Recharge Capital, Kingsway Capital, Raptor Group

Source: i2i ventures, Techshaw, KTrade Analysis 17
FUNDING STAGE OF THE
STARTUPS
Funding Stage for Startups in 2021 Year 2021 versus 2013-20 Combined
USD Mn
of the 59 deals in 2021 were seed

56% rounds Growth (highest) in Series B
3.9x
59 funding observed in 2021 versus
cumulative funding 2013-20
USD Mn
%
Avg Deal Size | Funds Raised
324
85.0 | 85.0 Series B 1
228
8.4 | 84.2 Series A 10
4.8 | 14.4 Pre-Series A 3
3.33 | 109.8 Seed 33 2013-20 2021
Pre-Seed Seed Pre-Series A

2.5 | 30.08 Pre-Seed 12 Series A Series B Series C
Convertible Note
Source: i2i ventures, Techshaw, KTrade Analysis *All figures mentioned are exclusive of undisclosed deals 18
TOP 3 FUNDING IN EACH STAGE Venture Capital Funding in Pakistan 2021
Pre-Seed Seed Pre-Series A Series-A Series-B Series-C
1 Startup
Funding (USD Mn) 6.5 15.0 11.0 55.0 85.0 20.0
Sector AgriTech FinTech FinTech E-commerce E-commerce Real Estate
Year 2021 (Q4) 2021 (Q3) 2021 (Q4) 2015 (Q3) 2021 (Q3) 2016 (Q4)
2 Startup
Funding (USD Mn) 6.0 12.0 2.4 30.0 13.0 6.5
Sector E-Commerce FinTech E-commerce E-commerce Transportation Human Resources
Year 2021 (Q4) 2021 (Q3) 2021 (Q4) 2021 (Q3) 2020 (Q3) 2015 (Q2)
3 Startup
Funding (USD Mn) 5.5 10.0 2.3 17.0 9.0
Sector FinTech Transportation Transportation E-commerce Real Estate
Year 2021 (Q2) 2021 (Q3) 2019 (Q2) 2021 (Q2) 2015 (Q1)
TYPE OF INVESTORS Venture Capital Funding in Pakistan 2021
Foreign
Investors
17 deals (YoY 21%) Deal Size (USD Mn)
USD 179Mn (YoY 463%)
Investor 10.50 2021
Type 2013-20
Foreign & Local Investors
Local Investors 6.46
6 deals (YoY 0%)
35 deals (YoY 338%) 3.85
USD 11Mn (YoY 173%) 3.77
USD 134Mn (YoY 539%)
1.77
0.52
of the funding was made by foreign investors in 2021 with
17 deals and avg. deal size of USD 10.5Mn depicting
59%
56% regained foreign investors’ confidence in Pakistani
Foreign Local Foreign and Local
ecosystem
On the supply side, 2021 saw the participation of 81 unique institutional investors of which 77 were international investors

MOST ACTIVE INVESTORS Venture Capital Funding in Pakistan 2021
• Deals: 11 • Deals: 5 SECTORS

• Sectors: E-Commerce, • Sectors: FinTech, AgriTech,
Transportation, FinTech, EdTech E-Commerce FinTech Health Tech
AgriTech, EdTech
• Deals: 10 • Deals: 5
• Sectors: AgriTech, FinTech, E- • Sectors: E-Commerce,
Commerce, EdTech, Transportation, FinTech
Transportation AgriTech
• Sectors: E-Commerce, • Sectors: E-Commerce, FinTech
Transportation, FinTech,
AgriTech
• Sectors: E-Commerce, EdTech, • Sectors: AgriTech, HealthTech,
Transportation, HealthTech, FinTech EdTech
Human Resources
• Sectors: AgriTech, • Sectors: AgriTech, EdTech, E-
Transportation, FinTech, E- Commerce
Commerce
Transport Other
VC Investors in Pakistan
Others 12 With majority of US based VCs, Pakistan
attracted investors from 16 countries in
3
2021 across the globe showing overall
4 increase in foreign interest in the
ecosystem
4
41
Company Vintage Funding (USD Mn) STARTUPS VINTAGE
Venture Capital Funding in Pakistan OVERVIEW
2021
324
81
60
42
28
1 5 5 7
2013 2014 2015 2016 2017 2018 2019 2020 2021

Less than One Year One to Three Years
Three to Five Years More than Five Years
Total
USD 270Mn
USD 7.1Mn
38 Deals
Investee HQ (USD Mn) COMPANY HEADQUARTERS (HQ)
OVERVIEW
85% of the funding were raised by startups with HQ in either Karachi or
Lahore
324
81
60
28 42
1 5 5 7
2013 2014 2015 2016 2017 2018 2019 2020 2021
Karachi Islamabad Lahore Rawalpindi Faisalabad

Peshawar Sialkot Gilgit total
USD 119Mn
USD 4.23Mn
USD 152Mn
USD 7.41Mn
SECTOR-WISE INVESTMENT TRENDS
24
SECTOR OVERVIEW Venture Capital Funding in Pakistan 2021
Sector Wise VC Funding in Pakistan (USD Mn)

Real Estate 182
Automotive
324
Energy
Communication 84
AdTech 2019
228
AgriTech 2020
24 2421
SaaS 8 13 6 15 5 11 2 2 2 9 1 8 7 2021
Travel
Human Resources
E-Commerce
HealthTech
FinTech
EdTech
AgriTech
Transportation
Others
EdTech
Media
FinTech
E-commerce
HealthTech
2013-20 2021 Transportation
USD 266Mn
USD 5.5Mn
USD 85Mn
E-COMMERCE ON A ROLL Venture Capital Funding in Pakistan 2021
Hottest sector raising USD 182Mn, with 19 deals in total
Fastest-growing consumer markets by growth Funding by Sector in 2021 E-commerce Growth

of the consumer class* from 2020 to 2030 (USD Mn) (USD Mn)
Out of the 30 biggest markets Projected Change in E-commerce is one of the major winners Investment in E-commerce grew
*those spending more than $11 (2011 PPP) on Rank 2020 rank 2020- from Covid-19 globally and locally as well by over 789%
average per day 2030
India 420 2 0 8.9x 182

China 337 1 0
Indonesia 76 4 +2 Others
Pakistan 60 7 +7 43%
E-commerce
Bangladesh 52 11 +17 57%
Phillippines 38 13 +7
21
Egypt 30 9 -1
U.S. 24 3 0
2020 2021
VC Funding becomes the new normal – From valuation’s perspective, Airlift’s largest single funding round with the valuation tag of USD 275Mn is:
• Greater than 90% of the companies listed at the PSX in terms of valuation. For instance, the valuation of Airlift alone is over 21% of total technology
sector market value (KSE-100 Tech Market Cap is around USD 1.3 billion as of mid December 2021).
• 33rd most-valued company on the PSX; in the benchmark KSE-100 index, out of more than 520 companies listed at the PSX.
Source: World Data Lab via Brookings Institutions, i2i ventures, Techshaw, Profit Pakistan, Bloomberg, PSX, KTrade Analysis *All figures mentioned are exclusive of undisclosed deals 26
E-COMMERCE IN PAKISTAN Venture Capital Funding in Pakistan 2021
USD 42Bn USD 1.2Bn 35% USD 2.5Bn

Retailing Market Size (RSP E-commerce Market Size in Growth in Pakistan’s e- E-commerce market size by
excl Sales Tax) in 2021 2021 (RSP excl Sales Tax) commerce sector in value 2025 (19% CAGR) out of
during Q1 of 2021 USD 57.3Bn retailing
B2B Marketplace B2C Retail Grocery & Food Q-Commerce Fashion

Connecting and digitizing Headless checkout – simple Headless checkout model Quick commerce – ultra-fast Limited drops online and social
Pakistan's ecosystem and seamless online customer dominates – Limited SKUs in delivery service media targeting
(wholesalers, traders, journey strategic locations
manufacturers and retailers)
Source: Euromonitor International, Dawn, The News, Brecorder, Bloomberg, PSX 27

FINTECH IN PAKISTAN Venture Capital Funding in Pakistan 2021
73% 2/3 110Mn USD 99Mn

of Pakistan's population has Of the 200Mn population Broadband subscribers grown Over USD 99Mn invested in
cellphones, making it are under 30 with most by 3x over the last 5 years to FinTech startups since 2015
attractive to FinTech shopping done in cash 110Mn in 2021
companies
Payment Gateway & Financial

Digital Payment Information
Mobile/ Digital
Wallets
Network Payment
InsurTech Processors
E-Infrastructure Provider
Asset, Wealth & Savings Buy Now, Pay Later

Financial Management
Mobile Payment Apps
Digital Lending
& Ledger
Source: Euromonitor International, Dawn, The News, Brecorder, PTA, i2i 28
E-Commerce Yearly Funding (USD Mn)

E-COMMERCE 182
Pakistan’s e-commerce sector is taking off as the industry
continues to rake in massive investment. Registered e-
56
commerce merchants in Pakistan increased 76% (YoY) from 24 21
1,707 to 3,003 in 2021. 0.8 1 2 2
2014 2015 2016 2017 2018 2019 2020 2021

Most people do not trust e-commerce which is why cash on
delivery is still the preferred method for online orders. Avg.
Deal Size 0.8 11 0.5 0.5 0.6 3 2 10
(USD Mn)
E-Commerce Category Funding (USD Mn)
112 Number of E-Commerce users is expected to
74
57 reach 65.1Mn users by 2025. While Average
16 10 11 7 1 0.5 1 0.3 0.3 0.2 0.1 0.04
Revenue Per User (ARPU) is expected to cross
USD 141.7
Home Services
Footwear
Price Comparison
Food delivery
Cloud Kitchen
Marketplace
Logistics & Mobility
Groceries
Sports goods
Retail & Logistics
B2B Marketplace
Retail
Travel
Analytics
On-Demand Services
2013-2021
Source: KTrade Analysis, i2i ventures, Techshaw 29

RETAIL E-COMMERCE – Food Delivery, Retail E-Commerce Yearly Funding (USD Mn)
Logistics & Mobility Food Delivery Groceries
Groceries and Logistics
Pakistan’s e-commerce industry is just taking off with online 93
retail accounting for about 2% of GDP, compared with 20% in
Indonesia. 15 12
Quick Commerce is the most fiercely contested current
sector, where Foodpanda and Airlift are the two big 2019 2020 2021
companies battling it out for market supremacy.
Avg.
5 3 23
Retail E-Commerce Category (USD Mn) Deal Size
(USD Mn)
1.7
7
Food Delivery and Grocery Funding in 2021
Outperforms 2019 and 2020 Combined
112
Food Delivery Groceries Logistics & Mobility
2013-2021

B2B Marketplace Yearly Funding (USD Mn)

E-COMMERCE – B2B Marketplace 69
There are over ten B2B e-commerce marketplaces currently
operating in Pakistan with USD 68.8Mn (in venture capital)
raised in the industry during the year.
Bazaar claims to have amassed over 750,000 merchants since
6
launch last year. And it appears to have solved a problem that
many of its South Asian peers are still grappling with.
2020 2021
Avg.
Deal Size 1 9
B2B Marketplace Category Funding (USD Mn) (USD Mn)
B2B Marketplace Funding Substantially

3 2
4 Outperforms in 2021, with Bazaar being the
9
best performer
38
19
Bazaar Tajir Retailo Dastgyr Jugnu Zarya
2013-2021
Source: KTrade Analysis, i2i ventures, Techshaw, TechnologyTimes.pk 31

FinTech Yearly Funding (USD Mn)

FINTECH 84
Fintech too finally lived up to the buzz that surrounds it.
QisstPay to be granted first-ever BNPL license by SECP in
Pakistan which will open up more investment in FinTech space.
Amongst 197 FinTech startups operating in Pakistan, major 5 5 11
1 2 1
drivers are electronic money institutions and trading platforms
such as Sadapay’s USD 7.2Mn and TAG’s USD 5.5Mn. KTrade 2015 2016 2017 2018 2019 2020 2021
bagged USD 5Mn.
Avg.
Deal Size 5 1 2 0.1 2 4 5
FinTech Category Funding (USD Mn) (USD Mn)
55
FinTech Gets Record Amount of USD 83.8Mn
Funding Raised in 2021 with 17 deals
15 13 12
6 3 2 2 1 1 0.1
Accounting
Neobank
Loans
Analytics
Trading
Bookkeeping
Lending
Payments
Lending CRM
Investments
Price Comparison
2013-2021

AgriTech Yearly Funding (USD Mn)

AGRITECH 9
Pakistan's biggest sector, contributing to around quarter of
the GDP and employing about half the workforce.
Largely untapped, however, given the potential of the market, 2

could see huge transformations modernize the supply chain
and processes.
2020 2021
Avg.
Deal Size 2 3
AgriTech Category Funding (USD Mn) (USD Mn)
AgriTech Funding Begins to Boost

2.0
2.5 6.5
B2B Marketplace Supply Chain Artificial Intelligence
2013-2021

AdTech Yearly Funding (USD Mn)

ADTECH
AdTech attracted foreign investors, with Screen-IT raising USD 3
250k from Coeus Solutions in Germany.
0.9 1
Since the boom of startups in Pakistan, funding has revived 0.6
0.2 0.3
this year after a dry spell in this sector. Notably Walee, a 0.05
female led influencer marketing app, raised USD 2.7Mn in
Aug 2021. 2014 2015 2016 2018 2019 2020 2021
Avg.
Deal Size 1 0.5 0.3 0.05 0.5 0.3 2.7
AdTech Category Funding (USD Mn) (USD Mn)
2.84 AdTech Funding Dramatically Increases in

2021
1 0.92
0.5
0.25 0.22 0.07 0.05
Virtual Reality
Deals
Rewards
TV Media
Marketing
Digital Billboard
Mobile Advertising
Influencer Marketing
2013-2021

COMMUNICATION Media & Communication Funding (USD Mn)

MEDIA AND COMMUNICATION Media Communication
Market size for communication sector is estimated to be USD
970Mn; President claimed that Pakistan produces 30 thousand 4 4
IT graduates every year.
2 2
Pakistan has produced 18.87Mn cell phones in the first 10 1
months of 2021 and the government has given industrial 0.1 0.1
status to the sector.
2013 2015 2016 2017 2019 2020 2021
Avg.
Media & Communication Funding (USD Mn) Deal Size
(USD Mn)
0.1 1 1 0.1 2 4 1
5 Media Funding Decreases Whilst

4
Communication Funding Has Been Dry For
2.0 1.7
the past 2 Years
0.4 0.2 0.1 0.1
Music
News
Networking
Video
Pop Culture
Travel
Streaming
Games
Social
2013-2021

EdTech Yearly Funding (USD Mn)

EDTECH 3
Pakistan's private spending on education in 2020 was USD
6Bn, expected to triple by 2030 according to Maqsad. 2
Maqsad recently raised USD 2.1Mn, the largest among

EdTech startups. This is one of the sectors which is still 0.1
untapped and majority of the funding is expected to pour in
the coming years. 2015 2019 2021
Avg.
Deal Size 0.1 0.8 0.8
EdTech Category Funding (USD Mn) (USD Mn)
0.2 EdTech Funding Receives Boost in 2021 after

Silent 2020
0.3
LMS Education Exam Prep Test prep
2013-2021

HealthTech Yearly Funding (USD Mn)

HEALTHTECH
15
Trend of digitization has emerged in the health sector and
UK's VM Interactive has invested USD 250K in Pakistan's
HealthTech scene. 6
0.9 1 2
Notable deals include Sehat Kahani and Dawaai.pk which was 0.1 0.1
able to generate significant interest from tier 1 foreign
investors and local family offices. 2015 2016 2017 2018 2019 2020 2021
Avg.
Deal Size 0.9 0.1 0.5 0.8 0.04 0.1 3
HealthTech Category Funding (USD Mn) (USD Mn)
0.3 0.1 HealthTech Funding Took a sharp rise after

1 pandemic in 2021
11 13
Pharmacy Marketplace
Fitness Medical Prescriptions
Medical Devices
2013-2021

SaaS Yearly Funding (USD Mn)

SaaS
Pakistan has been slow to embrace the internet economy, with 2
a population of 220Mn, of which two-thirds are under 30.
0.7
Social Champ raised USD 225,000 from an angel investor in 0.3 0.4 0.3 0.2
0.1 0.04 0.1
2020. While Integration Xperts, a leading cloud and ERP player,
raised USD 1Mn from renowned local institution i.e. Atlas
2013 2014 2015 2016 2017 2018 2019 2020 2021
Group.
Avg.
Deal Size
0.3 0.1 0.4 0.04 0.3 0.3 0.2 0.7 0.1
SaaS Category Funding (USD Mn) (USD Mn)
2
Funding in SaaS Falls in 2021
1
0.5 0.5
0.3
0.2
0.1 0.04
Development
Intelligence
Point of Sale
Procurement
Customer
Application
Digital Stores
Management
B2B Software
Integration
Social Media
Service
Artificial
B2B
2013-2021

Logistics Yearly Funding (USD Mn)

Logistics 24
BridgeLinx which is a digital freight marketplace has raised
USD 10Mn with 20 VC, Buckley Ventures and Indus Valley 13
Capital all leading the financing round. 8
0.4 1 0.2 0.2 0.5
BlueEX, logistics company, founded in 2005 get itself listed on
GEM counter raised around USD 2.6Mn 2013 2015 2016 2017 2018 2019 2020 2021
Avg.
Deal Size 0.4 0.4 0.2 0.1 0.5 4 13 4
Logistics Category Funding (USD Mn) (USD Mn)
19 Funding in Transportation Increases

Dramatically from 2020
10
9
7
2 1 0.4 0.1 0.03

Logistics and
Logistics and
Ridesharing
Emergency
Courier
Food delivery
Maintainence
Freight
Mobility
On-Demand
Ridesharing
Mobility
Alerts
2013-2021

OTHER SECTORS – HUMAN RESOURCES,

REAL ESTATE, TRAVEL, ENERGY, Other Sectors Yearly Funding (USD Mn)
AUTOMOTIVE Real Estate Human Resources Automotive Travel
Pakistan is rich in tourist destination, home to numerous 20
16
UNESCO world heritage sites and ranked the world's top
adventure destination by The British Backpacker Society. 4 0.2 1 2 2
PM claims that Tourism provides the highest return on
investment. 2014 2015 2016 2017 2018 2020 2021
Avg.
Deal Size 4 7.8 10 0.1 0.3 0.8 0.9
Others Category Funding (USD Mn) (USD Mn)
29
Real Estate Secures the most funding in
other’s category Since 2013
8
4 2 1
Travel
Energy
Resources
Automotive
Real Estate
Human
2013-2021

FUTURE OF VENTURE FUNDING
41
TURNAROUND OF THE STARTUPS Venture Capital Funding in Pakistan 2021
Dice have turned in favor of the startup

ecosystem. Since 2016, 300 reforms
Digital Platform Economy Ranking 2020
have been implemented to improve Although Pakistan still lags its regional peers in overall score covering Digital Infrastructure, Digital User Citizenship, Digital Multi-sided
Platform and Digital Technology Entrepreneurship as claimed by Global Entrepreneurship Development Institute…
the investment climate in the country.
105
97
The 3G/4G connections in 82
89
Pakistan have increased by 4x in the 71 73 76
63
last three years to 107Mn, enhancing 58
country’s digital landscape.
36
Government has also set up 19

incubators, offered tax concessions and
relaxed regulations. Pakistan and Japan
have agreed to increase industrial
cooperation, specifically modernization
of engineering industry.
Pakistan Climbs Up on World Bank Ease of Doing Business
Government has announced to
…the Ease of Doing Business (Score) has been constantly on upward trend as Pakistan is recognized as the top reformer in South Asia and
establish Special Technology Zones sixth best in the world. Recent reforms include company registration by the Securities and Exchange Commission in one day and the Federal
(STZ’s) for the fast-track promotion of Board of Revenue’s online tax payment and efficient customs software.
modern technology with the aim to 89
61 76
boost the economy, in addition to 52.5 53 55.5 67 64 70 72 63 69
50.4 53
recently established 13 small 45 46 47 53 49
industrial estates and 13 special 37
25
2020
2016
economic zones in Punjab.
The number of steps to start a business Dealing with Getting credit Getting Paying taxes Protecting Registering Starting a Trading
has decreased from 10 days to 5 days. construction electricity minority property business across
2016 2017 2018 2019 2020 permits investors borders
While still much behind India, ranked
63rd, Pakistan has improved its ranking Steady improvement over the last 5 years
by 39 positions over the last two years
and is now ranked 108th out of 190. Source: World Bank, The Global Entrepreneurship and Development Institute 42
FAVOURABLE DEMOGRAPHICS Venture Capital Funding in Pakistan 2021
While Pakistan has lagged regional peers in Technology adoption, it is on the right growth trajectory which will eventually make Digital
Platform the most attractive for the startup ecosystem
Tech-Savvy Demographics Tech-Savvy Demographics

85+ 0.1% 0.1% • Going by the trend of investment raised by startups since 2018, the future for VC
Female Male funding in Pakistan will only increase as digital and internet penetration is still far
80-84 0.2% 0.2% behind other emerging markets.
75-79 0.4% 0.4% • Pakistan is expected to outperform regional internet users’ growth that will
Given Pakistan’s improve internet penetration significantly to 39% by 2025, presenting even
70-74 0.6% 0.6% young population more lucrative platform for the startups to flourish.
65-69 0.8% 0.8% with 78%
population aged Currently Pakistan lags far behind in internet penetration…
60-64 1.2% 1.2% below 40 years)
81% 87%
55-59 1.5% 1.6% and average age 65%
73%
61%
(median) of just 23
50-54 1.8% 1.9% years presents a 34%
44%
21%
45-49 2.1% 2.2% large untapped
market for
40-44 2.6% 2.7% investors. Pakistan Bangladesh India World China Turkey Malaysia USA
35-39 3.1% 3.2%
…but Pakistan to outperform regional internet users' growth
30-34 3.7% 3.9%
22%
25-29 4.2% 4.4%
20%
18%
17%
15%
15%
20-24
14%
14%
4.5% 4.9%
12%
12%
11%
10%
10%
9%
9%
15-19 4.8% 5.2%
9%
8%
7%
7%
7%
7%
7%
7%
7%
10-14 5.1% 5.5%
5-9 5.6% 6.0%
2020 2021 2022 2023 2024 2025
0-4 6.1% 6.6% Pakistan India Bangladesh World
Source: World Bank, Euromonitor International, Preqin, Bain & Co India VC Funding Report., Profit Pakistan, KTrade analysis 43
THE TIP OF THE ICEBERG Venture Capital Funding in Pakistan 2021
Complimentary economic and demographic conditions have created an impressive startup environment. A growing economy and middle-
class spending power coupled with recent development will further engage foreign interests
• Prestigious foreign investors such as Advent International, • Despite the exponential growth witnessed in 2021, VC funding per capita in Pakistan remains way
Tiger Global Management, Canaan, Partners, Kingsway below the regional peers, lowest after Bangladesh.
Capital, 500 Global, Y Combinator and Kleiner Perkins
have poured money into Pakistani startups which will only • India currently has over 360 Unicorns with over 80 Unicorns (42 in 2021) in Startup space and over
attract more foreign VC funds. 11 Unicorns made only in this year. Whereas in Pakistan, there are currently only 8 unicorns in
Pakistan as of mid-Dec 2021 (all in the conventional listed space Commercial Banks, Oil & Gas).
• Nevertheless, Pakistan has a growing list of soonicorns (A startup that is soon to be turned into a
Unicorn) including Airlift, TAG, Tajir, Bazaar, and Creditbook. In the coming years, these startups can
potentially followsuit the decade over journey of India’s Zomato, Tech-based food delivery startup.
• Airlift is on the its way to become first unicorn in 2022 after raising USD 350Mn as per Profit.
VC funding per capita in Pakistan vs. Under-Funding in Pakistani Startup Ecosystem

peers for 2021 (USD per Capita) Despite having favorable demographics, high IT grads and high number of internet users,, Pak still does not
have a single unicorn
India 18.7
US China India UK Pakistan
Indonesia 15.8
Total number of unicorns 299 166 82 35 -
Saudi Arabia 9.3
Malaysia 9.3 Total number of funded startups 65K 16K 10.2K 13K 166
Huge upside
Vietnam 8.8 Total engineering graduates per year 0.26M 4.61M 1.5M 0.07M 0.02M
potential of
Thailand 5.9 11x from
here if we Total number of internet users 297M 854M 560M 64M 110M
Philippines 3.3 replicate India
Pakistan in coming Total number of incubators and accelerators 1.5K 14K 450 400 Undocumented
1.7
years
Bangladesh 0.7 Ease of doing business rank, World Bank 2020 (2019 6 (8) 31 (46) 63 (77) 8 (9) 108 (147)
Source: World Bank, Euromonitor International, Preqin, Bain & Co India VC Funding Report., Profit Pakistan, KTrade analysis 44
RECENT DEVELOPMENT FOR THE STARTUPS Venture Capital Funding in Pakistan 2021
Several government and private sector led initiatives have ensured continued growth and availability of funding to startups in Pakistan
amid the pandemic
Special Technology Zones • Government established STZs with a focus on exploiting the true potential of exports in technology sector to not only earn foreign
exchange through Foreign Direct Investment but to recover from the current account deficit. Companies under STZs are offered extra
(STZs) ordinary incentives including exemption from income taxes, all custom duties taxes, property tax, capital gain tax (including gains from
investments in a venture capital) for a period of ten years from the date of issuance by the Authority.
• Companies are also given permission for opening and maintaining foreign currency accounts for the repatriation and free transfer of
foreign currency posing an ideal scenario for foreign investors.
• Recently, Shorooq Partners, a leading VC firm headquartered in the UAE and with offices across Saudi Arabia, Egypt, and Bahrain, has been
granted approval by Special Technology Zones Authority (STZA) for the first STZ Enterprise license and will be opening its first office in
Pakistan in the Islamabad Special Technology Zone (STZ) to revamp the digital ecosystem in Pakistan.
Growth Enterprise Market • Pakistan Stock Exchange (PSX) has launched an early stage-dedicated board to help companies raise funds through listing on the capital
market. GEM Board facilitates small and medium enterprises, greenfield projects, and tech startups to get listed on the stock exchange and
(GEM) raise capital. The post paid-up capital requirement for GEM board is set at PKR 25Mn with no upper cap as compared to PKR 200Mn in
the main board. Further, there is no SECP approval requirements for the listing.
• In 2021, two companies got successfully listed on PSX’s GEM Board in 2021; Agro Packaging Limited (PAPL), importer, formulator and
distributor of pesticides, raised USD 1.2Mn and Universal Network Systems Limited (UNS), e-commerce logistics, raised USD 2.6Mn.
• Coeus Solutions, Technology Solution Provider, is all set to become first tech GEM listing of Pakistan after recently disclosing its
intentions to list on the GEM counter in the first quarter of 2022.
IT Parks - Tax Credit Regime • PSEB has established Software Technology Parks (STP’s) to provide IT enabled office space to help the IT industry of the Argo
and Specific provisions country to meet its immediate goals of increased FDI, technology transfer, increased exports, technology diffusion, increased
employment, and human resource development
• A PSEB registered startup business, which intends to offer technology driven products or services, and has turnover of less than
one hundred million in each of the last five tax years, is eligible for a Tax Credit regime. There is no tax deduction from
payments being made to startup for supply of goods, services, or contacts; provided exemption certificate under section 153 is
submitted.
Amendments in the • The recent amendments in the Companies Act 2017 carried out through the Companies Amendment Bill, 2021 would
Companies Act 2017 significantly promote start-ups, business innovation, entrepreneurship and improve general business climate in the country.
(See the next slide for the detailed discussion)
Source: Government Websites 45

STARTUP INCORPORATION EASIER THAN EVER… Venture Capital Funding in Pakistan 2021
Much Needed amendments to the Companies Act 2017 took place in December this year, allowing special privileges to startup companies
to attract investment, acquire credit and innovative business products and to get ready to take off from hereon
DEFINITION OF A As per the newly introduced definition for ‘Startup’ in Clause 2 sub-section 67A., any company will be
classified as a startups if incorporated within 10 years with an annual revenue of up to PKR 500Mn in any
STARTUP financial year, and working towards the innovation, development or improvement of products or processes
with a scalable business model and high potential of employment generation or wealth creation.
EASE OF DOING The elimination of the requirements to file unaudited financial statements for private companies along
.
with the removal of common seal and elimination of requirement of filing the subscription form. The
BUSINESS board resolution through circulation can now be passed with approval of majority of directors (previously
required to be signed by all directors).
EMPOWER MINORITY Requirement for holding shares is revised downward to 5% shares from 10% to give notice for calling a
members’ meeting to protect the rights of minority shareholders,
SHAREHOLDERS
PROMOTE GENDER Requirements to mention husband’s name for registration of a company have been abolished, bringing
company registration requirements at par for men and women
EQUALITY
STOCK OPTION SCHEME New clauses are introduced allowing private companies to issue shares to new investors against properties
and to their employees under employee’s stock option schemes. Private companies have also been
AND BUY-BACK allowed to buy-back their shares
Source: Companies Act 2017, SECP 46

JUST A BEGINNING, NOT THE END Venture Capital Funding in Pakistan 2021
Pakistan is among the most untapped countries in the world in 2021 presenting a great opportunity for investors which makes the future
bright for Pakistani startups
Ready to Take Off – All Metrices Checked Astronomical Growths in the Subsequent rounds – All amounts in USD Mn
• Faysal Asset Management Limited and KTrade
Securities Ltd. recently signs MoU to jointly launch
39x 85.0 10x 8.5
Pakistan’s first "Shariah Complaint Venture 25x 30.0
Capital Fund". The two companies plan to
establish a joint partnership with respect to
structuring, raising, launching and managing a
Venture Capital Fund in Pakistan under Private 22.2
6.5 1.2
Fund Management Regulations of the SECP. 0.9
2.2 1.3
• Sarmayacar, an early-stage VC had closed its USD
30Mn fund in 2018 and Fatima Gobi Ventures Seed Series A Series B Pre-Seed Seed Series A Pre-Seed Seed Series A
closed its USD 20Mn debut fund ‘Techxila Fund I’
in 2020 all dedicated for Pakistani Startups. 17x 7.5 25x 18.5
8.7x 17.0
• Interestingly, 48% of the startups closed their first
successful deal in 2021 whereas 52% (26 Deals)
8.9
had already closed a deal before. This shows that
Pakistan could expect more flow of funds when
these new startups will go for another round. 2.0
0.5 0.4 0.8
• Presently, there are around 2,940 Startups
operational in Pakistan, out of which only 5.6% Pre-seed Seed Series A Seed Series A Series B Seed Series A
(166) have been able to close a deal. Whereas
there are 69,963 startups in India out of which
14.5% of the startups (over 10,200) and in
Indonesia have received funding, depicting In 2021, 20 startups have closed their first round of either pre-seed or seed funding raising
potential under-funding in Pakistan. ~USD 63.2Mn. The average growth of subsequent rounds since 2013 has been 8.8x.
Source: Traxcn, KTrade Analysis 47
HOW CAN WE HELP STARTUPS?
48
OUR VALUE PROPOSITION Venture Capital Funding in Pakistan 2021
Our Services for Startups We can help your company raise capital from these investors
❑ Financial Modelling and Valuation Access to some of the Largest VC Funds

❑ Preparation of One Pagers, Information Memorandum & Pitch decks • Founded: 2015 • Dry Powder: USD 166mn
etc. HOF Capital • Location: New York • Investments: 48
• AUM: USD 230 mn • Deal Value: USD 1.7 bn
❑ Corporate & Transaction Structuring
• Founded: 2012 • Dry Powder: n.a
Apeiron • Location: UK • Investments: 15
❑ Investor Meeting Preparations
Investments • AUM: n.a • Deal Value: USD 377mn
❑ Due Diligence Preparation and Data Room Assistance
• Founded: 2016 • Dry Powder: n.a
TTB • Location: Hong Kong • Investments: 7
❑ Capital Raising Partners • AUM: n.a • Deals Val : undisclosed
▪ KTrade has mandates for 12 deals all concentrated in tech and tech • Founded: 2015 • Deals
• DryVal
Powder:
: USD 3n.a
bn
Dragon • Location:
Portfolio Companies:
China • Countries:
• Investments:
na 2
enabled business across all lifecycle stages Stone • AUM:
6 n.a • Deals Val : USD 3bn
▪ Our team has closed 6 deals – where our clients have raised capital
successfully or are in late stages of raising capital from tier 1 • Founded: 2012 • Dry Powder: USD 330mn
investors Jungle • Location: Singapore • Investments: 114
Ventures • AUM: USD 352mn • Deals Val : USD 1.2bn
We have a team of highly experienced and qualified
individuals with experience of raising capital from some of • Founded: 2006 • Dry Powder: n.a
Sturgeon • Location: UK • Investments: 9
the largest VC Funds Capital • AUM: n.a • Deals Val : n.a
Signed MoU to launch Pakistan’s first
“Shariah Compliant Venture Capital Fund” • Founded: 2016 • Dry Powder: USD 44Mn
Shorooq • Location: UAE • Investments: 44
Capital • AUM: n.a • Deals Val : USD 1.5Bn
Source: Crunchbase, Pitchbook, Preqin

49
KTRADE STOCK TRADING APP Venture Capital Funding in Pakistan 2021
284K+ USD 790 mn 500K+

Registered Users (Sep 21) Value Traded (LTM Nov 21) App Downloads (Dec 21)
▪ Being a fully regulated and award-winning brokerage KTrade has licenses for Pakistan Stock
Exchange and Pakistan Mercantile Exchange
▪ KTrade is the fastest growing equity brokerage - since launch in April 2018 it already has a 2%
share of all trading on PSX
▪ KTrade has also sponsored an hour-long TV Show on
▪ Won the 2021 CFA Society award for Financial Markets and 2021 P@SHA award in Finance
and Investment category – true distinction of a FinTech company
▪ Harvard Business School has published a case study on KTrade’s journey (click here). It is the first
and only case study on a Pakistani fintech/financial markets company
KTrade was featured in numerous articles post its recent capital raise
50
Ali Farid Khwaja Mahmood Ali Shah Bukhari Talha Azher

Chairman Chief Executive Officer Vice President
Corporate Finance
T +44 788 776 1538 T +92 301 822 2099 T +92 343 339 9269
E ali@oxfordfrontier.com E masbukhari@kasb.com E talha.azher@kasb.com
Abdul Rehman Ijaz Awaish Kumar Matlani Shahzeb Naveed

Associate Associate Analyst
Corporate Finance Corporate Finance Corporate Finance
T +92 305 229 9949 T +92 307 295 9856 T +92 332 330 8886
E abdulrehman@kasb.com E awaish.kumar@kasb.com E shahzeb.naveed@kasb.com
Faisal Khan
Analyst Corporate Office
Corporate Finance
Bukhari Tower, 33-C, 13th Lane , Main Khayaban-e-Bukhari,
T +44 7752 189525 Phase VI, DHA, Karachi
E faisal.khan@kasb.com
51

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Venture Capital Funding in Pakistan 2021

‘2021’ REMEMBER THE YEAR

Investment Trends in Pakistan VC Funding in Pakistan Top Funded Sectors of 2021

Deal Size has increased 2.8x to USD 5.5Mn. 100 20 Transport

highest pre-seed deal of USD 6.5Mn.

Source: KTrade Analysis, i2i Ventures, Techshaw, Market Research 3

Startup Space Overview

What Happened in 2021?

Sector-wise Investment Trends

Future of Venture Funding

How can we help Startups?

Overview Economy Snapshot Pakistan’s Real GDP Growth

▪ Over the last 5 years, Foreign Direct *Estimate

Total Mobile 3G/4G Unique Active Social

227Mn 188Mn 107Mn 47Mn 46Mn

Source: Worldometers / United Nations, Euromonitor International, PTA 7

Overview 2021 Equity Listings (USD Mn) Tech Sector’s Performance

KSE 100 SYS NETSOL AVN TRG* TPLT**

Source: KTrade Analysis, Pakistan Stock Exchange 8

STARTUP SPACE OVERVIEW

COVID 19 came and became a

In 2021, startups raised record high

Source: i2i ventures, Techshaw, KTrade Analysis at PSX in 2021. 11

Funding (USD Mn) Number of Deals Number of Investors

2013-20 2021 2013-20 2021 2013-20 2021

USD 324Mn Average Deal Size (USD Mn)

51 Companies 1.97 2 1.94

WHAT HAPPENED IN 2021?

59 USD 324 Mn USD 5.5 Mn

QTRLY FUNDING INVESTMENT STAGE (DEALS) COMPANY VINTAGE (USD MN)

Funding in USD Mn (LHS) Deals (RHS)

Health Transport AgriTech Others

Source: i2i venture Techshaw, KTrade Analysis 16

IN 2021 Startup Funding (USD Mn) Sector Investors

85 E-Commerce 20 VC, Buckley Ventures, Quiet Capital, Indus Valley Capital

VC Defy Partners, Wavemaker Partners, Acrew Capital, Global

8.5 HealthTech 500 Startups, Sarmayacar

Zayn Capital, Lakson Investments Venture Capital, Hayaat

7.2 FinTech Recharge Capital, Kingsway Capital, Raptor Group

of the 59 deals in 2021 were seed

4.8 | 14.4 Pre-Series A 3

3.33 | 109.8 Seed 33 2013-20 2021

Pre-Seed Seed Pre-Series A

Pre-Seed Seed Pre-Series A Series-A Series-B Series-C

Funding (USD Mn) 6.5 15.0 11.0 55.0 85.0 20.0

Sector AgriTech FinTech FinTech E-commerce E-commerce Real Estate

Funding (USD Mn) 6.0 12.0 2.4 30.0 13.0 6.5

Sector E-Commerce FinTech E-commerce E-commerce Transportation Human Resources

Funding (USD Mn) 5.5 10.0 2.3 17.0 9.0

Sector FinTech Transportation Transportation E-commerce Real Estate

Source: i2i ventures, Techshaw, KTrade Analysis 20

• Deals: 11 • Deals: 5 SECTORS

2013 2014 2015 2016 2017 2018 2019 2020 2021

2013 2014 2015 2016 2017 2018 2019 2020 2021

Karachi Islamabad Lahore Rawalpindi Faisalabad

SECTOR-WISE INVESTMENT TRENDS

Sector Wise VC Funding in Pakistan (USD Mn)

Hottest sector raising USD 182Mn, with 19 deals in total

Fastest-growing consumer markets by growth Funding by Sector in 2021 E-commerce Growth

India 420 2 0 8.9x 182

USD 42Bn USD 1.2Bn 35% USD 2.5Bn

B2B Marketplace B2C Retail Grocery & Food Q-Commerce Fashion

Source: Euromonitor International, Dawn, The News, Brecorder, Bloomberg, PSX 27

73% 2/3 110Mn USD 99Mn