Pakistan’s Startup Funding Plummets 92% to Just $3 Million in First Half of 2024
In a concerning trend, Pakistani startups managed to secure only $3 million in funding during the first six months of 2024, marking a staggering 92% year-on-year decrease. This information comes from a recent report by Magnitt, a respected analytics platform, in their “H1 2024 Emerging Venture Markets Venture Investment” analysis.
The report highlights that Pakistan experienced the most severe decline in startup funding among the emerging markets covered by Magnitt. The broader Emerging Venture Markets (EVM), encompassing the Middle East, Africa, Pakistan, Turkey, and Southeast Asia, witnessed a significant shift in investment patterns:
- Total EVM funding reached $3.469 billion, down 34% from H1 2023
- Deal count across EVMs fell to 618, a 34% year-on-year decrease
- Exit events declined by 51%
Notably, the fintech sector emerged as the top performer, attracting $1.097 billion across 128 deals. Singapore led the regional funding landscape, capturing 38% of the total investment.
For Pakistan, the situation was particularly challenging, with only five deals closed in the six-month period – a dramatic 77% reduction compared to the same timeframe last year.
The report provided a regional breakdown of funding and deal activity:
| Region | Total $ Funding | Total # Deals |
| South East Asia | $2,209m (-31%) | 235 (-26%) |
| Middle East | $665m (-18%) | 173 (-14%) |
| Africa | $393m (-57%) | 119 (-52%) |
| Türkiye | $200m (-25%) | 86 (-45%) |
| Pakistan | $3m (-92%) | 05 (-77%) |
| Total EVM | $3,469M (-34%) | 618 (-34%) |
*Percentages indicate change versus H1 2023*
Despite a 31% decline from H1 2023, Southeast Asia (SEA) maintained its leadership position, securing $2,209 million in funding and representing 64% of total H1 2024 EVM investment. The region also recorded the highest deal activity with 235 transactions.
The Middle East, Pakistan, and Turkey (MEPT) regions collectively attracted $665 million in funding, an 18% year-on-year decrease. Their deal count dropped by 14%, which, interestingly, was the smallest decline across all regions.
This downturn follows a challenging 2023, where Pakistani startups raised only $75.6 million, a 77.2% year-on-year decrease. Industry experts attribute this sharp decline to a “normalizing” market environment, characterized by high interest rates and a globally cautious investment climate, which has significantly impacted fundraising efforts.
