Battered, bruised, and severely under pressure, what remains of Pakistan’s startup ecosystem is looking at a $50 million injection that it desperately needs.Â
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.Â
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).Â
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. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
