Pakistani Startup Aims To Grow Into A Global Company
Pakistan's startup ecosystem has emerged as a significant player in the global technology community. Unfortunately, it also presents its share of challenges. One major issue facing entrepreneurs is a lack of local investors and skilled personnel.
Pakistan's startup scene has experienced an exponential rise in funding. As a key destination for foreign investment, Pakistan has attracted close to one billion dollars worth of venture capital since 2018.
Investors have been paying attention to a range of technologies, such as e-commerce, mobile payments, social media and digital advertising. The rise of digital finance has created opportunities for entrepreneurs to reach an ever-growing population of customers while offering new financial services such as microloans and insurance.
Due to the increasing demand for FinTech solutions, many startups are exploring international expansion. TAG Fintech, for example, aims to give Pakistanis access to banking and other financial services by providing them with technology.
TAG Fintech is a digital-native project aiming to address Pakistan's lack of banking infrastructure and promote financial inclusion by providing users with a safe, secure, and user-friendly platform to send and receive money via web and mobile. Regulated by the State Bank of Pakistan, its system meets service standards and requirements for secure monetary services delivery.
Dastgyr, a Pakistani e-commerce startup that recently raised $16 million, is another recent success story. Launched in February this year, Dastgyr has already attracted funding from Bill & Melinda Gates Foundation's Strategic Investment Fund, Sequoia Capital, 500 Global and JS Group - all within one year!
Alexander Lukianchuk, CEO of TAG Fintech, is on a mission to bring their mobile-first banking solution to over 225 million citizens of Pakistan - which currently has one of the oldest banking infrastructures worldwide. With an increasing population and high penetration of 4G mobile networks, TAG Fintech believes there is great potential for growth within this market.
Though Pakistan's economy remains weak, foreign investment is an encouraging sign that startup activity is on the rise. Furthermore, policy changes such as creating a legal framework for electronic money institutions and broadening access to mobile financial services have created an encouraging atmosphere for investors.
But there's still much work to be done. A recent report by i2i, a global venture fund, highlighted several factors that need to be addressed in order to increase success rates for startups in Pakistan.
According to the report, Pakistan must address the gender gap and encourage more women to become entrepreneurs. Furthermore, more job opportunities must be created for its young population.
Therefore, the country's startup ecosystem is at a crucial juncture. Only those companies that can effectively address key problems and implement local solutions will continue to prosper in the future.