European Investors Bet On Pakistan’s Leading Technology Startups

Via Frontera, an interesting look at Pakistan’s online market sector:

Pakistan maintains the world’s sixth largest population, and online businesses there dream of the untapped potential among its consumer base of nearly 200 million people. However, with nationwide internet penetration currently at only 15%, that potential may remain untapped for some time to come. Nonetheless, foreign investors are competing to secure early positions in the market, and the month of September was a particularly busy one in that respect.

Daraz, a three-year old e-retailer backed by Germany’s Rocket Internet, raised US$ 56 million to help bankroll their next phase of development. Nearly half came from CDC Group, the British developmental finance institution. A percentage will also be allocated to the startup’s operations in Bangladesh and Myanmar. One week later Zamzama Property Group, which owns Pakistan’s largest property listings portalZameen, announced the closure of its US$ 9 million Series B round, which includes aSwedish venture capital firm amongst its three participants. Imran Ali Khan, the firm’s co-founder, claimed that the company had so many offers that they were able to‘cherry-pick’ their investors. Zameen’s shareholders include a French angel investor that led its seed round in 2012, and a Malaysian investment firm that funded its Series A round in 2014.

Pakistani mobile operators are now offering Internet connectivity for as little as $1 per month. Coupled with increased foreign investment into its most promising startups, it appears likely that the country’s online ecosystem may grow even more rapidly in the coming years.

This entry was posted on Thursday, October 8th, 2015 at 7:44 am and is filed under Pakistan.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

Comments are closed.

Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.