Funding Milestones, AI Advancements, and Opportunities for Growth
Invest2Innovate (i2i)
An Ecosystem Designed to Foster Innovation, Amplify Impact, and Fuel Growth for Startups!
TL;DR
Hello Readers,
As the new year begins, venture capital activity remains sluggish. December recorded only one publicly disclosed deal, involving LAAM Technologies ($5.5M). Additionally, two startups, Davaam and SOCVault , secured funding from Accelerate Prosperity - An AKDN Initiative (AP) while Krave Mart (YC S22) also raised funding from inDrive ’s new venture arm, though the investment amounts were not disclosed. On a brighter note, Gobi Partners made headlines with the launch of their $50 million Techxila Fund II, signaling a significant commitment to the ecosystem.
??December's Funding Highlights
LAAM Technologies raised $5.5M
LAAM, an E-commerce startup founded in 2021 to sell South Asian fashion in South Asia and around the world, raised $5.5M in Seed funding. The funding will allow LAAM to invest in Artificial Intelligence (for Agentic capabilities to support sellers on their platform) and to hire their workforce in major markets such as North America and Middle East. Its funding round was led by Disrupt Ventures and Zayn VC , with participation from Graph Ventures , Mentors Fund , and investors from 甲骨文 , 微软 , 谷歌 , and Salesforce .
Krave Mart gets strategic investment from inDrive
Krave Mart (YC S22) , a quick commerce delivery platform founded in 2021, secured strategic investment from inDrive ’s new venture fund. Though the amount remains undisclosed, the funding comes as part of inDrive ’s $100M initiative targeting startups in emerging markets. This investment will enable Krave Mart (YC S22) to strengthen its operations in Pakistan and explore potential expansion into new markets.
Davaam and SOC Vault secure investments from AP
Accelerate Prosperity - An AKDN Initiative has invested in Davaam and SOCVault . Davaam is transforming FMCG distribution with eco-friendly dispensing solutions that reduce plastic waste and costs, while also promoting inclusivity through its Feminine Hygiene Stations. SOC Vault offers cost-effective, one-click cybersecurity solutions tailored for SMEs, e-commerce sellers, and fintechs, helping prevent cyberattacks, reduce downtime, and minimize energy consumption, thereby supporting digital resilience and sustainability.
??Friday Feature - AI: Where does Pakistan Stand??
In our last Friday Feature, we explore how Pakistan’s IT sector is embracing Artificial Intelligence (AI) amidst growing global demand. With up to 30% of IT export solutions now AI-based, the sector is positioning itself as a key driver of economic recovery. AI’s potential contribution to Pakistan’s economy could reach $10–20B by 2030, supported by advancements in Digital Public Infrastructure and the government’s push for centralized digital identity.However, challenges like reliance on foreign data centers and restrictions on storing sensitive data abroad highlight the need for local AI infrastructure. Stakeholders remain optimistic, anticipating the emergence of AI-capable data centers within the next two years, provided public-private collaboration accelerates.
For the full Friday Feature, click here.
From the desk of i2i ??
??From Idea to Impact: Closing the Funding Gap in Pakistan’s Startup Ecosystem
On 14th December, Invest2Innovate in partnership with Telenor and Special Technology Zones Authority - STZA hosted a roundtable to tackle critical funding gaps in Pakistan’s startup ecosystem. Drawing insights from the Pakistan Startup Ecosystem Report 2024, the event brought together key stakeholders to discuss actionable solutions, including attracting diverse funding, enabling venture and angel investments, and fostering startup scalability through holistic support. This roundtable was supported by Telenor Velocity , the Visa Foundation, and conducted at the +92Disrupt Conference by Katalyst Labs .? The discussions covered vital topics such as regulatory reforms, tax incentives, and collaboration among ESOs, investors, and policymakers. Highlights included thematic sessions on venture capital, angel investments, and the role of the corporate sector and ESOs in driving startup growth. Following these discussions, Invest2Innovate, Telenor, and STZA will be publishing a policy brief with key recommendations to bridge the funding gap.?
?? New Partnership with National Incubation Center Karachi
In December, we are proud to announce our new partnership with NIC Karachi. Through this collaboration, both ESOs will join forces to accelerate startup growth by facilitating mentor referrals and exchange programs, co-hosting events, sharing knowledge products and resources, and providing access to i2i’s Angel Investor Community, among other initiatives. Together, we aim to create a thriving ecosystem for startups in Pakistan.
领英推荐
??Call for Applications: Growth Readiness Workshop?
We are also excited to announce that applications for our flagship Growth Readiness Workshop are now live! Designed for early-stage, post-MVP, and post-revenue startups, this program equips founders with the tools to scale their businesses strategically and sustainably.
Here’s what participants can expect:
? A 5-day intensive online workshop (Jan 14–20, excluding weekends) to tackle key business milestones.
? Insights to refine product-market fit and understand your ideal customer.
? A tailored marketing playbook to resonate with your audience and drive growth.
? A personalized 6-month growth roadmap for actionable scaling.
? Financial projections and real-time frameworks to optimize performance and sustainability.
This isn’t just a workshop—it’s a transformative experience for founders ready to unlock growth and impact.Applications close on 5th January! Don’t miss your chance to take your startup to the next level: https://bit.ly/i2i-Growth-Readiness-4?
??Gobi Partners Launch Techxila Fund II
Gobi Partners recently announced their second VC fund for Pakistan called Techxila Fund II. This new $50M fund builds on the success of their Techxila Fund I, via which Gobi Partners had invested in a total of 22 startups. Some of their notable investments included Abhi (YC S21) , Priceoye , ?and DealCart . This fund will be deployed in startups operating in high potential sectors such as fintech, e-commerce, mobility and supply chain, healthtech, and SaaS. Speaking at the signing ceremony, Thomas G Tsao (Co-Founder and Chairman of Gobi Partners) said that the fund will foster innovation and support entrepreneurs in Pakistan.
December 2024 - This month in news!?
Industry news and highlights ??
xAI Raises another $6B: xAI, an AI startup founded by Elon Musk and known for its GenAI chatbot Grok , recently raised another $6B in funding with an estimated valuation of around $50B. It makes xAI one of the largest AI startups in the world by valuation and only behind some of the leading AI startups like OpenAI (valued at $157B) and Databricks (valued at $62B).
Pakistan’s Foreign Direct Investment (FDI) reaches $1.12B
Foreign Direct Investment (FDI) in Pakistan reached $1.12B during July-November FY24, a 31.3% increase from $856M in the same period of FY23, according to the State Bank of Pakistan. While the growth is promising, the overall size of FDI remains modest. China remained the top investor, contributing $469M (42% of total FDI), up 60% year-on-year. Hong Kong and the UK followed with $115.66M and $112.99M, respectively. Key sectors included power ($454.49 million, up 51%), financial business ($249.41M), and oil and gas exploration (23.82% growth). However, the communications sector faced significant divestments of $47.37M.
In November 2024, FDI stood at $219M, marking a 27% year-on-year and 65% month-on-month increase. Canada emerged as the largest investor for the month with $65M, followed by China and the UK. The mining and quarrying sector led inflows with $64.73M, while the communications sector saw the highest net outflows of $23.71M. This highlights sustained growth in key areas despite challenges in certain sectors. For more in-depth analysis, please read this research article by Business Recorder.
Trending Reads & Must-Watch this Month
IPO Frenzy at Pakistan Stock Exchange - PSX
The Pakistan Stock Exchange (PSX) saw a strong comeback in 2024 with seven companies launching initial public offerings (IPOs), including two on the Growth Enterprise Market (GEM) Board, compared to just one IPO in 2023. These companies raised Rs8.4B ($30 million), the highest amount in three years. All IPOs were oversubscribed, showing high investor interest, supported by improved economic stability, falling interest rates, and a stable political environment. The stock market’s key index, the KSE-100, jumped 83% in PKR terms (85% in USD), reflecting positive investor sentiment. Trading activity also grew significantly, with daily volumes rising 69% to 545M shares and daily values increasing by 108% to Rs21B. This highlights a strong revival in Pakistan’s stock market during the year. You can read more about it in detail in this article by Profit.
Want to know about the local startup ecosystem? As you may have heard, we recently published our yearly report called Pakistan Startup Ecosystem Report (PSER). You can download it here!
P.S. Got thoughts on our newsletter? Stories to share? Hit us up! We love hearing from our community. Drop us a line! ??