Good news Pakistan’s venture-backed startup scene just crossed $4 billion in combined value, up 3.6 times since 2020. The growth rate? Faster than New York, Paris, and Dubai, according to the January 2026 Pakistan Tech Report by Dealroom.co and inDrive. That sounds impressive, despite the uncomfortable truth that Pakistan still does not have a single unicorn, and no startup is making more than $100 million in annual revenue.
Pakistan now has over 170 VC-backed startups. Among them are 17 “breakouts” that have raised between $15 million and $100 million, two scale-ups with more than $100 million in funding, and 13 “Colts” generating $25-100 million in yearly revenue.
The problem? Most of these companies are stuck scaling domestically. On average, only 32 startups raise their first VC round each year, a clear sign that early-stage funding remains tight. Limited local capital means most Pakistani startups depend on foreign investors, with a significant share of growth funding coming from abroad. And foreign investors often want to see global potential, not just local dominance.
Fintech, mobility, enterprise software, edtech, and health tech dominate investor attention during VC-rounds. Delivery startups have fared relatively better, raising $16-40 million rounds. Crypto and mobile payments ventures secured $18-20 million each. These are solid numbers, but the capital is being used to capture Pakistani market share, not to expand across borders. Women-led startups face an even steeper climb. While 288 women founders applied to the Aurora Tech Award in 2025 alone, showing strong interest in health tech, AI, and sustainability, most remain stuck at the pre-seed stage. Breaking through to Series A and beyond remains difficult
Pakistan’s fundamentals look good on paper:
- 3.0% real GDP growth in FY2024-25, with projections of 2.6-3.0% for FY2025-26
- 59% of the population is working age (15-64)
- Median age: 21-22 years old
- 68% smartphone penetration
- 81% 3G/4G coverage
- 45.7% internet penetration
With deeper pools of growth capital, stronger ties to global markets, and a focus on building products that work anywhere, Pakistan’s $4 billion startup ecosystem could scale rapidly over the next five to seven years.
That’s a massive, young, digitally connected market waiting to be served. The Dealroom report suggests that early underfunding might create opportunities down the line in the shape of the “lean startup” narrative, but it also reveals a harder truth.
Compare this to India or Southeast Asia, where startups design for global compliance and enterprise-grade standards from day one. Pakistani companies, by contrast, optimize for local demand first and think about international expansion later, if at all.
Without a deliberate shift toward building globally competitive products, investing in international sales teams, and navigating compliance for foreign markets, Pakistani startups will keep hitting the same ceiling. Without that shift, the VC-backed growth story risks stalling, and even though there may be impressive numbers popping up, there are no meaningful breakthroughs. The question isn’t whether Pakistan can grow its startup ecosystem. It’s whether Pakistani founders are ready to think beyond Pakistan.
