The fintech opportunity in Pakistan’s breakout funding year

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Hello there,

I remember watching the travels of an ex-colleague’s trip to the Hopar glacier and Hunza valley in Pakistan’s Gilgit-Baltistan region unfold on Instagram a few years ago. At the time, I made a mental note to visit someday.

Though Pakistan is known for many things, its picturesque sights are rarely mentioned. That narrative, however, has changed slightly in recent times. Social media influencers flock to the region, promoting a different side to the country away from the corruption, political instability, and fears of terrorism that often dominate headlines.

These days, it’s not just travelers who’re drawn to the country. Investors last year injected a record US$350 million into Pakistani startups – more than 5x the amount raised in 2020. Several deals saw foreign VCs like Tiger Global and Kleiner Perkins back startups in the country for the first time.

This week’s big story details the surge in funding that Pakistani startups saw last year, how fintech became a particular bright spot among them, and what it’ll take to keep the momentum going in the years ahead.

Over in Malaysia, the wait for the results of successful digital banking licensees awardees got extended indefinitely after months of anticipation because Bank Negara Malaysia said its decision would be announced “upon completion of the legal process.” My colleague, Emmanuel, has more in this week’s Hot Take.

— Melissa

THE BIG STORY

1️⃣ Fintech a bright spot in Pakistan’s breakout year

Image credit: Timmy Loen

Pakistani startups are attracting more international VC funding than ever before. But will that momentum continue?

THE HOT TAKE

Malaysia’s digital banking hiccup

Image credit: Timmy Loen

NEWS YOU SHOULD KNOW

FYI