After three consecutive years of decline, Pakistan’s startup funding showed a recovery in early 2025, with disclosed equity investment rising to $36.6 million, according to a teaser report released by Data Darbar. The rebound, driven largely by a low base effect, marks a cautious but important turnaround for the country’s startup ecosystem.
Between 2022 and 2024, Pakistani startups faced shrinking investor interest due to economic uncertainty, currency depreciation, and a global slowdown in venture capital activity. Funding rounds became fewer and smaller, forcing many startups to delay expansion plans or shift toward survival mode.
Data Darbar’s 2025 snapshot reveals that, although the number of announced startup deals reached the lowest level on record, the total value of disclosed equity funding increased significantly. This suggests that investors are now backing fewer but more resilient startups, leading to concentrated funding activity rather than broad-based deal-making.
The report also highlights a growing reliance on alternative financing sources, including venture debt and strategic investments, as founders adapt to a tighter equity funding environment. This shift reflects a maturing ecosystem where startups are exploring diverse capital options beyond traditional venture capital.
While the recovery remains modest, the $36.6 million equity funding figure in 2025 offers renewed optimism for Pakistan’s startup sector, suggesting gradual stabilization after years of contraction.
