According to data made available by Data Darbar, investment in Pakistan’s ICT industry continued to decline in Q4-2022, falling to just $15.15 million. Since Q1 of 2020, when investments totaled $5.025 million, this quarter has been the worst for startup funding.
On a year-over-year (YoY) basis, the investment in Q4-2022 decreased by 79.24 percent compared to the investment of $72.96 million in Q4-2021. Compared to the investment of $55.40 million in Q3-2022, the quarter-over-quarter (QoQ) reduction was likewise higher than 70%, coming in at 72.65 percent.
The number of deals also decreased to 8 in the fourth quarter of 2022, the fewest since the second quarter of 2020. (7). When compared to 25 deals in Q4-2021, the number of deals was down 68% YoY.
Compared to 18 deals in the preceding quarter, the deal count decreased by 55.57 percent on a quarter-over-quarter basis.
From $365.8 million in 2021 to $347.44 million in 2022, total investments in startup decreased by 5%. Additionally, the number of deals fell from 84 in 2021 to 70 in 2022.
According to the industry breakdown, e-commerce held the top spot for fundraising value in 2022, with $190.27 million raised across 16 deals. The amount raised in 2021 was higher at $174.6 million. Fintech had the most transactions, totaling $100.3 million across 19 transactions. Healthtech brought in $15.1 million, while the transportation and logistics industry brought in $28.1 million.
According to the stage-by-stage breakdown, Series A fundraising in 2022 was $133.5 million, followed by Seed funding at $83.35 million and Series B funding at $80 million.
The data also reveals that in 2022, firms with female founders raised $4.35 million across five deals and won $21.55 million across seven deals.