Backed by Bank of Punjab, Gobi Partners is set to bet on Pakistan again. Why now?

Battered, bruised, and severely under pressure, what remains of Pakistan’s startup ecosystem is looking at a $50 million injection that it desperately needs. 

The current funding winter has lasted well over a couple of years at this point, with players once touted as future unicorns failing to make it through. Amidst this climate of caution, the global venture capital firm Gobi Partners has announced a $50 million fund for Pakistani startups. 

This is undoubtedly good news, but what exactly has Gobi interested in Pakistan at a time like this? It shows that there is still an appetite amongst global investors for Pakistani products in the startup space. But this time around Gobi is entering Pakistan through an interesting model: They have partnered up with the Bank of Punjab (BoP). 

But how will this partnership work, and what has driven Gobi Partners’ desire to bet $50 million on Pakistani startups at a time when others have stepped back? Behind the decision, there is some interesting strategic calculus.