July 01, 2022 (MLN): Pakistani startups have raised around $104 million in the second quarter of 2022, down by 41% QoQ from $177M due to a slowdown in VC funding amid global macro tailwinds and pullbacks across markets, especially in tech, as reported by Data Darbar.
in the first half of 2022, the Pakistani startups raised almost $277mn, surging 135% from $117.6mn over the same period of 2021.
This pulled the average ticket size down 58% to $4.94M in Q2-2022, as against $11.5mn in the preceding quarter. But compared to $99.2M in Q2-2021, funding still registered an increase.
Globally, venture investments hit new records in 2021 thanks to cheap liquidity. However, spiraling inflation and rate hikes by the Fed ruined the vibe, dealing a major blow to high valuations and outsize rounds that became so typical.
Between March and May, VC funding slowed both MoM and YoY, reflecting a shift away from the olden days, it added.
The correction in the VC market has forced companies to reconsider their business models and cut costs. So far, 881 startups have laid off over 141,000 people with Pakistan being no different in this regard.
In the past few months, a number of high-profile players announced mass layoffs and pullouts from some services or markets. That includes Airlift, Truck It In, Retailo, Tazah, and Swvl, among others, it noted.
