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Gobi Partners Launches $50 Million Fund to Boost Pakistan’s Startup Ecosystem

Karachi, Pakistan – In a landmark move to drive innovation and foster entrepreneurship in Pakistan, Gobi Partners, a leading pan-Asian venture capital firm, has unveiled the $50 million Techxila Fund II. This fund, launched in collaboration with the Bank of Punjab (BoP), marks a strategic partnership designed to nurture startups and fuel economic growth in Pakistan.

The announcement was made during the Pakistan Investment Conference in Shanghai, coinciding with the historic visit of Punjab Chief Minister Maryam Nawaz Sharif to China. The visit, which took place from December 8 to 15, 2024, was aimed at strengthening ties between Pakistan and China, with a focus on information technology, healthcare, environmental management, and climate change.

A Strategic Collaboration for Entrepreneurial Growth

The Techxila Fund II is part of Gobi Partners’ long-term commitment to supporting entrepreneurs in Pakistan. The fund will target high-potential sectors including fintech, e-commerce, logistics and supply chain, health tech, and SaaS (Software as a Service). The goal is to empower underserved entrepreneurs, promote innovation, and drive sustainable growth in emerging markets.

The new fund builds on the success of Techxila Fund I, which focused on similar goals and has already made substantial progress. Fund I invested in 22 startups, collectively impacting over 3.2 million low-income households, generating a total revenue of $245 million in 2023, and issuing $54 million in loans.

Key Investments Under Techxila Fund I

Some of the standout investments from Techxila Fund I include:

• PriceOye – Pakistan’s second-largest e-commerce platform.
• DealCart – A social commerce platform dedicated to providing affordable groceries.
• Abhi – A financial platform offering innovative credit solutions for businesses and individuals.

These investments represent Gobi Partners’ belief in the potential of Pakistan’s startup ecosystem, particularly in the digital and technology sectors.

Backing From Institutional Investors

The launch of Techxila Fund II has also attracted institutional investors such as BII and other notable partners, further bolstering the credibility and impact of the fund. This shows Gobi Partners’ ability to attract diverse investment sources and its focus on high-impact ventures that can create value in underserved markets.

The MoU with The Bank of Punjab

Alongside the launch of the fund, Gobi Partners signed a memorandum of understanding (MoU) with The Bank of Punjab (BoP) to establish a collaborative framework for enhancing Pakistan’s entrepreneurial ecosystem. This partnership is set to provide crucial financial support to startups and entrepreneurs, helping them scale their operations and navigate the challenges they face.

Key Areas of Collaboration Between Gobi Partners and BoP:

• Debt Financing: Offering preferential rates to startups for debt financing.
• Equity Investments: Facilitating equity investments in high-growth companies.
• Banking Credit Lines: Providing access to banking credit lines to scale operations.
• Tailored Financial Products: Designing financial products specifically for startups.
• Mentorship Programs: Offering mentorship to entrepreneurs to ensure sustainable growth.

This collaboration is expected to open up new avenues for growth and innovation in the country, fostering the next generation of business leaders and entrepreneurs.

The Impact of Techxila Fund II

The Techxila Fund II is designed not only to provide capital but also to actively contribute to the development of Pakistan’s digital landscape. The fund’s support will extend to industries that are critical to Pakistan’s economic future, including:

• Fintech: Driving financial inclusion and providing access to financial services for the underserved.
• E-commerce: Accelerating the digital retail landscape in Pakistan.
• Health Tech: Innovating in healthcare delivery and medical technologies.
• Logistics and Supply Chain: Improving the efficiency and sustainability of supply chains.
• SaaS: Promoting the adoption of cloud-based services in business operations.

The fund is designed to foster sustainable economic growth by creating job opportunities, empowering entrepreneurs, and driving technological innovation in Pakistan.

Key Remarks from Leaders

Punjab Chief Minister Maryam Nawaz Sharif

Punjab’s Chief Minister, Maryam Nawaz Sharif, expressed her gratitude towards Gobi Partners for their commitment to Pakistan’s startup ecosystem. She emphasized that the launch of the $50 million fund is a major step forward in catalyzing innovation and creating employment opportunities. She also proposed the creation of a strategic framework for permanent collaboration between Gobi Partners and the Punjab Government, which would ensure the sustained growth of the entrepreneurial ecosystem.

Gobi Partners Co-Founder Thomas G Tsao

Thomas G. Tsao, Co-Founder and Chairman of Gobi Partners, expressed his excitement about the launch of Techxila Fund II. He noted that the fund and partnership with BoP represent Gobi Partners’ long-term commitment to nurturing innovation and supporting entrepreneurs in Pakistan. He stressed the importance of creating sustainable economic opportunities for Pakistan’s future.

Bank of Punjab President Zafar Masud

Zafar Masud, President and CEO of BoP, also commented on the collaboration, stating that this initiative will significantly strengthen Pakistan’s startup ecosystem. He pointed out that the partnership would unlock new opportunities for growth and innovation, particularly in the financial and digital sectors.

FAQs

1. What is the purpose of the Techxila Fund II?

The Techxila Fund II aims to empower startups in Pakistan, focusing on high-potential sectors such as fintech, e-commerce, health tech, and SaaS. The fund provides capital to entrepreneurs and supports innovation in underserved markets.

2. How much capital is being invested in the Techxila Fund II?

The Techxila Fund II has an investment corpus of $50 million, which will be used to support startups and drive economic growth in Pakistan.

3. What sectors will the Techxila Fund II focus on?

The fund will primarily focus on sectors such as fintech, e-commerce, logistics and supply chain, health tech, and SaaS.

4. How will the partnership with BoP benefit startups?

The BoP partnership will provide debt financing at preferential rates, equity investments, access to banking credit lines, and tailored financial products for scaling operations. Additionally, mentorship programs will support entrepreneurs in their growth journey.

5. How will this initiative impact Pakistan’s economy?

This initiative will foster innovation, create jobs, and drive sustainable economic growth in Pakistan, especially in the technology and digital sectors. The fund’s impact will be seen through enhanced entrepreneurship and improved financial inclusion

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