- Pakistan’s tech ecosystem has grown at 3.6x since 2020, second only to the Bay Area and outpacing New York, according to a new Dealroom and inDrive report.
- Capital scarcity in high-growth “New Frontier” markets like Pakistan creates a critical window for early, strategic entrants as ecosystems mature.
- inDrive is a global mobility and urban services platform operating in 48 countries, and an operator-led investor supporting frontier-market founders beyond capital alone.
12 February, 2026: Pakistan is emerging as one of the most promising “new frontier” tech ecosystems globally, with recent growth second only to the Bay Area, according to a new report by startup intelligence platform Dealroom and global mobility company inDrive.
The report, The Rapid Rise of Pakistan Tech, shows that Pakistan’s startup enterprise value has grown more than 3.6x since 2020, putting it ahead of the likes of India, New York and London.
The report is the first in a new research series examining high-potential tech ecosystems outside traditional global hubs. Pakistan was selected as the inaugural market due to its strong underlying fundamentals, accelerating digital adoption and growing relevance within inDrive’s core operation footprint.
It shows that Pakistan has built a strong foundation of more than 170 VC-backed startups with a combined enterprise value exceeding $4 billion, which, despite being smaller overall, is catching the Bay Area and has grown at a faster rate than India and other leading tech hubs since 2020. In fact, among Pakistan’s younger startup cohorts the momentum is even stronger – VC-backed companies back since 2015 have grown 11.3x since 2020, which outpaces all major tech hubs, including the Bay Area.
This includes two scaleups (over $100m in funding), grocery platform Bazaar and Telenor Microfinance Bank, the latter of which received more than $185 million in investment from Ant Group in 2025. In addition, Pakistan is now home to 13 Colts – companies with revenues between $25m and $100 million. Among its startup landscape, fintech, transportation, marketing and food are the biggest sectors. In 2025, fintech Haball secured a $52 million funding round, while healthtech company MedIQ secured a $6 million round. Pakistani founders are raising money from beyond local sources too, with the United States ($797m) and the UAE ($545m) identified as substantial sources of investor capital.
Pakistan’s growth is also being driven by several favourable demographics, which include:
- A young population: 59% are aged 15-64, working age in the country
- Growing smartphone adoption: 68% owned a smartphone in 2023-24
- Rising digital adoption: 190 million active mobile SIM connections were recorded in early 2025, 75% of the population. However, with internet users estimated at just under 46% of the population, this suggests multiple SIM ownership and uneven internet adoption, leaving further room for growth.
More generally, the country’s GDP growth rose to 3% in FY2024-25, up from 2.6% the previous year, highlighting a gradual macroeconomic recovery. However, the ecosystem remains significantly underfunded at every stage of growth and has yet to produce a unicorn or $100m-revenue technology company.
A new frontier ecosystem at an inflection point
New Frontier ecosystems are fast-growing, high-potential tech markets outside traditional global hubs, and now attract 11% of global venture capital investment, up from less than 4% fifteen years ago.
Pakistan sits firmly within this group as an emerging tech ecosystem with strong fundamentals but still early in its maturity. While the country contributes a small share of total new frontier enterprise value, the report shows rapid growth and clear momentum. Capital scarcity, rather than talent, is the main constraint — creating an opportunity for early, engaged entrants to play a disproportionately large role as the ecosystem develops.
Why operator-led investors matter
As an emerging ecosystem, Pakistan’s startup market is at a stage where operators with scale, local presence and market knowledge can have an outsized impact on long-term outcomes.
The report highlights how inDrive, the number one ride-hailing platform in Pakistan, is transitioning from operator to ecosystem investor, combining capital with distribution, infrastructure and hands-on operational support. This is underpinned by inDrive’s transition to a SuperApp model, giving mission-led founders access to a large existing user base, local operational support and AI-first infrastructure, extending inDrive’s contribution well beyond capital alone. In capital-constrained markets, this operator-led model can materially improve founder success beyond funding alone, as it enables founders to build on top of a scaled, operational model such as inDrive. In doing so, it reduces market execution risk for founders.
One example of operator capital starting to flow through the ecosystem is inDrive’s Ventures, which has invested in Pakistani grocery platform Krave Mart. The analysis also finds that operator-led investors are well placed to support undercapitalised segments, including women-led startups, helping unlock talent in the early stages of ecosystem development.
Andries Smit, Chief Growth Businesses Officer, inDrive, said: “Pakistan is an emerging tech ecosystem with all the right fundamentals in place — strong founders, growing digital adoption and clear demand. As the number one ride-hailing platform in the market, inDrive has seen this first-hand. That’s why we’re increasingly moving beyond being an operator to also becoming an ecosystem investor, combining capital with operational expertise, infrastructure and distribution. In frontier markets like Pakistan, operators that make this transition can play a critical role in accelerating the startup ecosystem.”
Yoram Wijngaarde, Founder and CEO of Dealroom, said: “Pakistan stands out as a New Frontier tech ecosystem with strong momentum but clear structural gaps. Our data shows a rapidly growing base of VC-backed startups and accumulating founder experience, yet capital remains the main constraint. This combination creates a defining moment: ecosystems like Pakistan can generate significant long-term value if early growth is matched with sustained investment and engaged operators.”
