Pakistan’s startup enterprise value has surged more than 3.6 times since 2020, a growth rate that surpasses markets such as India, New York, and London, and is second globally only to the Bay Area, a new report has found.
According to a statement today, the research, conducted by global mobility platform inDrive in partnership with startup intelligence firm Dealroom, identifies Pakistan as one of the world’s most promising ‘new frontier’ technology ecosystems.
Titled “The Rapid Rise of Pakistan Tech,” the study reveals the country now has more than 170 venture capital-backed startups, which collectively hold a combined enterprise value exceeding $4 billion. The analysis highlights that younger companies founded after 2015 have experienced particularly rapid expansion, growing 11.3 times since 2020 and outpacing all major global tech hubs.
This momentum is attributed to strong fundamentals, including a large, young working-age population and rising digital adoption. The report notes that with 190 million active SIM connections recorded in early 2025 and increasing smartphone penetration, there is significant room for further digital expansion as internet use currently remains below 46 per cent.
Despite the rapid expansion, the research identifies capital scarcity as a key constraint in emerging markets. It suggests that established operators with local knowledge and scale, such as inDrive, can play a pivotal role by transitioning from operators to ecosystem investors. One example cited is inDrive Ventures” investment in the Pakistani grocery platform Krave Mart.
According to the study, operator-led investors are well positioned to provide startups with access to a large user base, operational infrastructure, and distribution channels, thereby reducing execution risk where traditional venture capital is limited. This model can also support under-capitalised segments, including women-led enterprises.
Andries Smit, Chief Growth Businesses Officer at inDrive, stated that Pakistan possesses all the necessary fundamentals for a thriving tech ecosystem. “In frontier markets like Pakistan, operators that make this transition can play a critical role in accelerating the startup ecosystem,” Smit commented, explaining the company’s move to combine capital with its operational expertise.
The analysis firmly positions Pakistan within the new frontier category of high-potential markets, which now attract 11 per cent of global venture capital investment. The country is home to 13 “Colts”-companies generating between $25 million and $100 million in annual revenue-with its largest startup sectors identified as fintech, transportation, marketing, and food.