Islamabad, Sep 5: Pakistani startups are eyeing expansion into the Gulf with renewed vigor–and for good reasons, according to a report released by i2i Venture.
Due to persistent macroeconomic problems, unstable political environments, declining purchasing power, and currency devaluation, entrepreneurs are coming to the realization that growing their businesses internationally is not only a wise decision, but also a requirement.
The recent increase in funding agreements, which companies like PostEx and MYCO raised large cash to penetrate into the Middle East, reflects this shift in focus.
The funding increase underlines the need of regional diversification as a tactic to weather local economic issues in addition to providing the desperately needed funds for expansion.
In the third quarter alone, four startup deals were registered: three of these featured firms expanding into the Middle East or beyond.
This year has only seen six deals completed.
This takes us back to the widely held belief that investment is attracted to expansion, according to the paper.
The analysis evaluated how regional diversification has been trending since the collapse of several startups and the subsequent funding crunch, with the aim of drawing in foreign investors and high-end consumers to those regions.
The e-commerce logistics and financial services startup Postex just closed a Pre-Series A financing for $7.3 million.
Conjunction Capital led the round, and DASH Ventures, Sanabil500, Vsquared Ventures, FJ Labs, and Zayn VC also participated. With this most recent investment, PostEx has raised an astounding $15.9 million in total capital.
The report also stated to keep a watch on this firm as it grows and innovates within the market.
The Web3 video streaming startup yco.io has raised $10 million in a Series A funding round.
