Pakistani startups raised $133.7 million across 10 deals in 2026 so far, according to a report by i2i Ventures. Funding in the third quarter alone was nearly five times higher than the same period last year.
The biggest deal was fintech firm Fasset, which raised $68 million at a $1 billion valuation. Excluding that one deal, startups raised about $6.7 million in the quarter, showing that early-stage funding remains hard to find.
Signs of progress
The report pointed to positive steps, including new startup listings on the stock exchange and government plans for a Venture Capital Bill. A second phase of the Pakistan Startup Fund, worth $10 million, is also planned.
New rules for digital banks and virtual assets could open more doors for young companies, analysts said.
Challenges remain
Despite the growth, founders say seed funding is still scarce. Investors are writing bigger cheques, but only for startups with real revenue and clear plans, the report noted.
The report also noted growing interest from foreign investors in Pakistani fintech. Easier rules for digital payments have made the sector more attractive, analysts said.
Edtech and agritech startups are also drawing attention. One edtech firm raised fresh funds to expand abroad, while AI startups in farming secured notable rounds this year.
Founders said they want simpler company registration and tax rules. They believe friendlier policies could bring Pakistan’s startup funding closer to regional peers like Egypt and Bangladesh.
Women-led startups are also getting more attention from investors this year. Ecosystem leaders said gender diversity is slowly becoming a real part of the funding story.
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