Karachi

Let’s Start Up!

Thanks to Pakistan’s rapidly flourishing start-up business culture, the country is undergoing a generational shift regarding its investor axis.

By Fathima Sheikh | December 2024


The culture of start-ups in Pakistan has taken flight in recent years. Most importantly, this urgency stems from a desire for work autonomy and a drive to challenge traditional ideas and practices. Particularly in Pakistan, a country where recession and political instability seem to be at an all-time high, the culture of ‘start-ups’ has persisted. Although this could point to a desire to control one’s livelihood in an economy where a specific minority primarily usurps the navigation and ownership of institutions, many other factors contribute to its tenacity.

The shift from industrialization to digitization driven by AI and robotics has cemented data as the new currency. Tajir, GrocerApp, Dawai, Finja, Daraz.pk, TAG, SadaPay, Zameen.com, and numerous others are a testament to this generation’s shift towards AI. They highlight the transition from agrarian to technocratic societies, focusing on the growth of digital empires. Although most industries have digitized their entire journey, from production to distribution processes, many facets of the economy remain as untapped as potential in Pakistan, such as textiles, financing, and education. Still, the country is undergoing a generational shift regarding its investor axis, and we are witnessing a real-time shift.

Faisal Aftab, the founder and general partner of a leading Venture Capital Fund, Zayn Capital, and a judge at Shark Tank Pakistan, is a renowned authority on early-stage tech ventures and reflected on this ‘tech boom’ urgency in the region. Aftab’s insight directed the impact of digitization and data connectivity on society, particularly in the context of Pakistan, to the launch of 3G/4G licenses in 2014 that enabled widespread data connectivity in a country that had been too late to the ‘tech party.’ Technological advancements like AI, robotics, and digitalization gradually began disrupting various industries, and inevitably, the economy began to reshape its movement. Day-to-day necessities like taxis, food, and house-help became independent of effort and are now a tap away. These needs are now fulfilled through apps like Bykea, FoodPanda, and GharPar.

When asked about the current economic fiasco that Pakistan is undergoing, Aftab seemed hopeful and encouraging. Regarding the investor atmosphere, he observed that Pakistan’s start-up ecosystem’s most significant challenges and opportunities did not necessarily include what others would claim as political instability or corruption but rather the need for quality founders with strong execution abilities. The day-to-day political activity that might disrupt an owner’s physical presence at a factory or office is not a thought that a tech company worries about since their work requires only connectivity that already exists in abundance. While he noted that there seems to be a lag effect in capital investment due to the impact of geopolitical factors, Aftab stressed the importance of understanding business cycles and managing growth and financing needs accordingly, as all thriving economies today are facing tumultuous political times. While sharing his perspective on investing in start-ups, he emphasized the importance of evaluating factors like market opportunity, founder capabilities, competition, and timing that affect a business model. His advice for the new-age start-up generation looking to peek into a seasoned investor’s mind commanded a singular combination: integrity and consistency.

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