The Pakistan Startup Ecosystem Explained: Hubs, Incubators and Investors

Pakistan's startup scene went through a boom and a bust in five years. Funding peaked in 2022 at more than $300 million; estimates range from $315 million to $355 million depending on the source. It then fell steeply as global venture capital tightened and Pakistan faced economic and political pressure.

The numbers

Year	Venture funding raised	Source
2022	About $315 million to $355 million	ProPakistani; Invest2Innovate via Profit
2023	$75.8 million	Data Darbar via ProPakistani
2024	$22.5 million across 15 deals	Data Darbar via ProPakistani
2025	$36.6 million	Data Darbar via Business Recorder

Data Darbar called 2024 the weakest year since 2018. The 2025 recovery is real but small; the total remains far below the peak.

Where startups are built

Most startups are in Karachi, Lahore and Islamabad. A network of National Incubation Centers in major cities, backed by Ignite, the government's technology fund, gives early teams space, mentoring and investor access. Universities run their own incubators too.

Who invests

Sarmayacar. Started as an angel syndicate in 2016 and domiciled its first fund in 2018. The IFC invested $2.5 million in it in 2019, and in October 2024 it launched a $40 million climate fund.
Indus Valley Capital. Closed a $17.5 million debut fund for early-stage internet startups in Pakistan.
i2i Ventures and other funds with Pakistan-focused mandates (DealStreetAsia).
Foreign funds that invest across emerging markets, mostly at later stages, which largely paused during the downturn.

What this means for investors

Valuations have reset, fewer companies are competing for capital, and the startups still standing have learned to manage cash. That makes now an interesting time to look, with the usual caution about currency and regulatory risk.

The monthly Funding Tracker will list every disclosed round with its source.

Sources