Sai Venture Capital seeks $10mn to launch Pakistan's first local-currency VC fund

Lahore-based Sai Venture Capital Pvt. is seeking $10 million in funding primarily from local investors to launch Pakistan's first venture capital fund in seven years, denominated in local currency, with the aim of supporting the country's emerging tech industry and startups, as reported by Bloomberg.

Approximately 40% of the fund has already been committed, and it also received regulatory approvals from the Securities and Exchange Commission (SECP) in October, Co-founder of Sai Venture Capital Ahsan Jamil was quoted by Bloomberg.

This development comes as foreign investors’ interest in Pakistani startups has declined due to high interest rates and global economic uncertainty.

Read This: What’s next for Pakistan’s earliest startup veteran?

Pakistan's startups attracted over $700 million in investment since 2021, with a significant portion from international investors.

However, recent currency fluctuations have put pressure on startups to achieve substantial growth to maintain the interest of foreign investors.

Sai Venture Capital has already made investments in companies serving developed markets and startups in sectors like health, agriculture, and education.

Their most recent investment was in Truckistan, a logistics platform, which received $1 million in funding on September 19, 2023.

Despite past successes, Pakistan's startup ecosystem has faced challenges in recent times, with reports of shutdowns and reduced operations.

In the second quarter of 2023, Pakistani startups secured only $5.2 million in funding, a 95% decline compared to the same period the previous year. This decline is also 77.5% lower on a quarterly basis.

In response to these challenges, Pakistan's caretaker IT minister, Dr. Umar Saif, has announced plans for the 'Pakistan Startup Fund,' aiming to revive and attract funding to support the country's startup ecosystem.