Daily Times

Pakistan is gifted with talented individuals who have come up with creative tech solutions for problems in agriculture, health, education, energy, and environment. The Government of Pakistan envisions to build a business-friendly environment to attract foreign investments in order to promote entrepreneurship in Pakistan. The setting up of Special Investment Facilitation Council (SIFC) is a breakthrough by government of Pakistan for facilitating foreign investors and customers in Pakistan’s ICT sector. The purpose is to remove any hurdles being faced by foreign investors and customers to make it convenient for them to invest and to get a good return on their investments in Pakistan because of lower infrastructure and labor costs as compared to other countries.

Pakistan’s startup ecosystem has experienced remarkable growth over the past couple of years, supported by a network of National Incubation Centers (NICs), Business Incubation Centers (BICs) and other incubators and accelerators. These entities provide critical infrastructure, support, resources, mentorship and networking to startups, nurturing innovation and entrepreneurship in the country. The ecosystem has attracted both local and international investors, leading to increased funding opportunities for startups. Over the last two and a half years, Pakistani startups have raised more than $760 million in funding majority of which is foreign investment against an average equity of 25%. That gives a valuation of more than $3 billion to Pakistani startups at present. More than 20 global VCs including Kleiner Perkins, Tiger Global, Draper Associates, Orbit SOSV, and many others have invested in Pakistani startups over the last couple of years. This reflects the confidence these investors have in the future potential of Pakistani startups.

So far, Ignite has established NICs in 8 different cities of Pakistan including Islamabad, Lahore, Karachi, Peshawar, Quetta, Faisalabad, Hyderabad, and Rawalpindi with expansion to more cities being planned in future. These centers provide startups with essential support, including infrastructure, mentorship, training and access to investment opportunities. These centers have successfully nurtured over 1300 startups, attracting and supporting entrepreneurial talent in Pakistan. The startups incubated in NICs cover various sectors, including technology, e-commerce, health, education, and more. NICs provide the following benefits to incubated startups:

The NIC program has facilitated startups in raising a significant amount of investment, with a total of 22.1 billion PKR raised by NIC startups so far. This access to funding plays a vital role in fuelling the growth of startups and driving innovation in Pakistan’s tech sector. In future, government will be launching a Startup fund as well as an Endowment fund for giving seed grants to promising startups.

The NIC program has had a substantial impact on job creation, both directly and indirectly, with over 126,000 jobs created by incubated startups. Startups nurtured by the program have contributed to Pakistan’s economy, generating revenue of 13.85 billion PKR so far.

NICs offer state-of-the-art infrastructure, including free office space, high-speed internet, meeting rooms and other necessary facilities. Startups benefit from access to modern technologies, software tools, and equipment, enabling them to develop innovative solutions. The availability of resources within the NICs reduces the initial financial burden and encourages them to focus on business planning and product development.

NICs provide startups with access to experienced mentors and industry experts who guide them in various aspects of business planning and execution. Mentors offer valuable insights, help refine business strategies and assist startups in navigating challenges and seizing opportunities.

Last year, Ignite had launched a specialized/vertical incubator in agritech in Faisalabad and this year, Ignite has launched its second vertical incubator in aerospace technologies in Rawalpindi. In future, Ignite plans on launching vertical incubators in healthtech, AI, energy and space. These vertical incubators have research labs where startups can develop and test their products.

Success Stories and Impact

The NIC program has produced several success stories, with numerous startups achieving significant milestones and raising investments. Some successful startups which have been incubated by NICs include Bykea (logistics), Pakvitae (cleantech), MyTM (fintech), Integry (middleware), Digikhata (fintech), Farmdar (agritech), Ezbike (cleantech), and Okayker (services). These success stories inspire aspiring entrepreneurs, attracting more talent and investment in the ecosystem.

By leveraging the resources, mentorship, training, and funding opportunities provided by the NIC program, Pakistani startups have been able to thrive and contribute to the country’s digital transformation and economic growth. If annual investments in Pakistani startups grow by 25% or more for the next 5 years or so, it is expected that Pakistan will have its first homegrown unicorn (billion-dollar startup) by 2028 or earlier.

Writer is Chief Executive Officer at Ignite Pakistan