KARACHI: Pakistan has “all the right ingredients” to emerge as a strong technology ecosystem, supported by capable founders and a maturing startup environment, according to Arsen Tomsky, founder and CEO of inDrive, whose remarks accompany a new research report examining the country’s evolving tech landscape.
The study, titled “The Rapid Rise of Pakistan Tech,” was released by inDrive in collaboration with startup intelligence platform Dealroom.co, and identifies Pakistan as one of the most promising emerging markets within the global “New Frontier” of startup ecosystems.
According to the report, Pakistan’s startup ecosystem has seen substantial growth in recent years, with the combined enterprise value of local startups now exceeding $4 billion, representing 3.6 times growth since 2020.
“BRICS markets have seen tremendous growth over the past 20 years. Pakistan represents what we see across the New Frontier markets: strong founders, accelerating ecosystem maturity and a clear gap between talent and capital,” Tomsky said.
“All the right ingredients are present. With persistence, strong local operators like inDrive, investment into the next line of startups and a supportive regulatory environment, markets like Pakistan can achieve tremendous growth.”
That pace of expansion has outperformed several established markets, including India and major global technology hubs such as New York, Paris and Dubai, the report said.
Globally, the study notes that technology entrepreneurship is increasingly expanding beyond traditional centres. More than 70 cities across emerging ecosystems have now produced at least one $1 billion technology company, marking a tenfold increase since 2015. These “New Frontier” ecosystems collectively attract around 11% of global venture capital, compared with less than 4% fifteen years ago, and together represent more than $2 trillion in enterprise value.
Pakistan’s potential is supported by several structural factors, particularly its expanding digital base. Around 68% of the population owned a smartphone in 2023-24, while mobile broadband coverage reached roughly 81% of the population. However, active mobile internet use remained lower at around 23-29%, indicating significant room for future digital expansion.
The report also notes that Pakistan recorded approximately 190 million active mobile SIM connections in early 2025, equivalent to around 75% of the population, while internet penetration stands at roughly 45.7% with about 116 million users. Demographics are another factor supporting the country’s technology potential. Pakistan has a young population, with around 59% of citizens aged between 15 and 64 and a median age of roughly 21-22 years, indicating a large and growing workforce. Macroeconomic indicators have also shown modest improvement.
International investors are gradually showing interest in Pakistan’s startup ecosystem, particularly in fintech and mobility. Early participation includes operator-led investors and corporate venture funds such as inDrive Ventures and Veon Ventures.
Even so, Pakistan remains significantly underfunded compared with regional peers. Startup capital in Pakistan currently totals around $57 million, with $15 million directed toward breakout-stage companies, compared with around $3 billion and $6 billion respectively in India.
The report suggests that this funding gap also creates an opportunity for early investors and operators to play a defining role in shaping the ecosystem’s future growth.
One example cited in the study is the investment by inDrive Ventures in Pakistani grocery platform Krave Mart, launched in 2021, which leverages inDrive’s platform expertise, logistics capabilities and local operating experience to support scaling in key cities.
The report also highlights that while many Pakistani founders establish their startups locally, a significant share of venture capital is raised abroad, reflecting the limited availability of domestic funding.
Women-led startups are identified as a high-potential but undercapitalised segment of the ecosystem. Pakistan accounted for 288 applications to the Aurora Tech Award in 2025, out of roughly 3,400 global submissions, a relatively high share given the ecosystem’s size.
Many of these startups operate in sectors such as EdTech, artificial intelligence, health technology, energy and sustainability, and gaming, with several addressing United Nations Sustainable Development Goals including education, innovation and gender equality.
Startup activity has accelerated significantly over the past decade. The report notes that ecosystem knowledge and founder experience have steadily increased, with 121 startups emerging between 2011 and 2015, 317 between 2016 and 2020, and 518 between 2021 and 2025. Key sectors driving growth include fintech, transportation, and marketing.
