More Related Content


Pakistan Startup Report

  1. A 15-min guide by World Startup Report Updated: July 7, 2014 #pakstartupreport
  2. #pakstartupreport © 2014 All Rights Reserved Bowei Gai •  Silicon Valley serial entrepreneur •  Founder, World Startup Report •  Founder, CardMunch (acquired by LinkedIn) • •  @Bowei Adam Dawood •  Pakistani Entrepreneur •  Founder, DYL Ventures •  Co-Founder, • •  @adamdawood Authors
  3. #pakstartupreport © 2014 All Rights Reserved Contributors @shakirhusain Creative Chaos @kalsoom82 I2I @kayzafar LUMS @monispk Muneeb Maayr Ahmed Khan Kaymu @jehan_ara P@SHA Imran Ali Khan The authors would also like to thank the countless number of people within the local startup community who helped compile the database. We would also like to thank Sara Sultan and everyone else who reviewed the presentation and wiki prior to it being released. This report would not have been possible without the tireless work of many in the community Obaidullah Khawaja Flikkable @nabeelaq Plan9
  4. #pakstartupreport © 2014 All Rights Reserved Our Mission Document To document Pakistan’s startup ecosystem as a chapter of the World Startup Report through detailed analyses and reports based on the local culture, trends, key players and challenges. We wish to share this report pro bono to encourage investors to take advantage of current opportunities. Connect Identify and empower local startup activists to become ambassador’s for Pakistan’s ecosystem. We aim to assist local entrepreneurs connect with each other and with the global startup community.
  5. #pakstartupreport © 2014 All Rights Reserved Agenda 1. Why Pakistan 2. Names to Know 3. Culture 4. In Depth Look 5. Opportunities 6. Acknowledgements
  6. #pakstartupreport © 2014 All Rights Reserved “Pakistan with its nearly 200 million population is simply too large and too attractive a market to ignore” Ehsan Malik, CEO of Unilever Pakistan Why Pakistan?
  7. #pakstartupreport © 2014 All Rights Reserved 6th most populous nation in the world with 180+ million people 60% aged between 15-45 Pakistan at a Glance Investors are allowed to hold 100% equity and full repatriation of capital. 110 million 3/4G users expected by 2019 25-45 million broadband users expected by 2020 4th largest middle class population in absolute numbers in Developing Asia.
  8. #pakstartupreport © 2014 All Rights Reserved Pakistan at a Glance All $ amounts in USD Pakistan India USA Population 184m 1.2B 320m GDP 254B (‘14) $1.8T $16T Population < $2/day 60.2% ('08) 68.7% 0% Population < 30 years old 68% 63% 40% Population (2020) 210m 1.3B 337m % of pop that’s speaks English 55% (‘10) 10% 94%
  9. #pakstartupreport © 2014 All Rights Reserved Web & Mobile Markets Pakistan India USA Population 184m 1.2B 320m Internet Users 30m 240m 260m Internet Penetration 16% 12.6% 81% Online ad market ~ $10m ~ 577m ~ $100B Mobile Subscriptions 136.5m 893m 327m Mobile Penetration 74% 72.1% 102% Smartphone Users 6.8m 35m 152m Smartphone penetration 3.7% 3% 47.5% Mobile Operator ARPU/ month $2.5 $2 $46.50 Facebook Users (Jun'14) 14.4m 104m 180m E-commerce Market Size $15m $16B $272B All $ amounts in USD
  10. #pakstartupreport © 2014 All Rights Reserved Mobile Subscribers in 2019 - 20 40 60 80 100 120 140 160 180 200 2014 2019 Forecasts for Mobile Subscribers. (in millions) GSMW-CDMALTE Ovum (2014) 110 Million 3G/4G Subscribers anticipated by 2019
  11. #pakstartupreport © 2014 All Rights Reserved Lahore Incubators Lahore is the cultural capital of the country and also the main techhub. The Arfa Software Technology Park is the heart of the cities software industry and also home to the Punjab IT Board. Population: 10 million Universities: 30 Co-Working Spaces
  12. #pakstartupreport © 2014 All Rights Reserved Karachi Incubators Co-Working Spaces Karachi is the largest city in Pakistan and the financial and economic centre of the country. It is home to the largest companies within Pakistan and an increasing number of startups. Population: 20 million Universities: 32
  13. #pakstartupreport © 2014 All Rights Reserved Islamabad Peshawar Incubators Co-Working Spaces The Capital of the country hosts some of the nations best engineering universities. Population: 5 million Universities: 18 Local Entrepreneurs have started a movement to create a hub of technology enthusiasts. Population: 3 million Universities: 11
  14. #pakstartupreport © 2014 All Rights Reserved Agenda 1. Why Pakistan 2. Names to Know 3. Culture 4. In Depth Look 5. Opportunities 6. Acknowledgements
  15. #pakstartupreport © 2014 All Rights Reserved Names to know “Foreign Firms are rushing into Pakistan to compete in some of the most easily monitizeable parts of the web.” Steven Millward, Editor TechinAsia
  16. #pakstartupreport © 2014 All Rights Reserved IT Solutions (1995) $40M valuation Careers Portal (2007) Valued at $10-$20m. Acquired in 2013 for $2-$5m Collaboration Tool (2011) Raised $5m from Morgenthaler Ventures Recent Successes Key Players Rising Stars E-commerce (2008) 1,500 products sold/day E-Commerce (2006) Automotive Portal (2003) E-Commerce (2012) Funded by Kima Ventures Real Estate Portal (2006) Funded by Frontier Digital Ventures & Catcha Group Video Sharing (2006) 30 million video views/month E-Commerce (2006) Biometrics (1977) Vision Technology (2012) Food Delivery (2013) SMS Messaging (2010) Internet Marketing (2004) Game Studio (2006) Food Delivery (2012) Acquired by E-Takeaway Cricket Network (2012) This list comprises of only a small selection of Pakistani startups, for a more complete list visit
  17. #pakstartupreport © 2014 All Rights Reserved International Investments Fashion (2012) 1,000+ products/day Marketplace (2012) 1,000+ orders/day Food Delivery (2012) 250+ orders/day Private Limo (2013) Real Estate (2013) Automobiles (2013) Hotel Booking (2014) Classifieds (2014) Schbisted recently launched Asani to compete with OLX Classifieds (2011) The largest classifieds In Pakistan Bus Ticketing (2014)
  18. #pakstartupreport © 2014 All Rights Reserved Angels, Incubators, Investors Incubators/ Accelerators Angels Investors Plan9 Yusuf Jan Kima Ventures The Foundation by LUMS Center for Entrepreneurship Zafar Khan Frontier Digital Ventures Invest2Innovate Afaque Ahmed Draper Fisher Jurvetson PlanX Humayun Mazhar ePlanet Ventures Microsoft Innovation Centre Jamal Khan Rocket Internet IBA CED Nadeem Elahi P@SHA Fund MITEF Atif Khan Seed Ventures Seed Incubation Centre Shabana Khan Arpatech Cloud9 Startups Jumpstart Pakistan
  19. #pakstartupreport © 2014 All Rights Reserved Media, Conf, Events Tech Media Conferences Meetups Events ProPakistani   P@sha ICT Awards Startup Grind StartupWeekend TechJuice TIE Conference Civic Hackathons Lean Startup PakWired CIO Summit Google Developer Group T2F Workshops Scoop Circle TEDx Code for Pakistan Startup Cup Pakineur Google DayX Google Business Group P@SHA Launchpad Blogogist Digital Youth Summit KPK Shepherds Pie LUMS Entrepreneurship Challenge
  20. #pakstartupreport © 2014 All Rights Reserved Agenda 1. Why Pakistan 2. Names to Know 3. Culture 4. In Depth Look 5. Opportunities 6. Acknowledgements
  21. #pakstartupreport © 2014 All Rights Reserved Culture
  22. #pakstartupreport © 2014 All Rights Reserved Web Culture Sensitive Media Gets Shut Down •  Due to the sensitive nature of certain religious and cultural issues social media channels such as Facebook and Twitter have been banned at various points in the last 5 years. Currently YouTube is still offline, and recently Twitter has been blocking certain tweets. Online Engagement Prevalent Among Political Youth Last year's online support for Imran’s Khan PTI election campaign shows that the youth of the nation is using social media to champion political causes.  
  23. #pakstartupreport © 2014 All Rights Reserved Local Entrepreneurs Most Young People Prefer to join MNC’s or go Abroad •  Most young graduates prefer to join a multinational company or find work abroad. •  However, local universities such as LUMS & IBA are encouraging students to be more entrepreneurial and assist them in setting up their own ventures “Entrepreneurship should be taught at school so that children know that opportunities exist beyond regular professions like medicine and engineering” Ishrat Hussain, Dean at IBA
  24. #pakstartupreport © 2014 All Rights Reserved Returning Entrepreneurs There are 12,500 Pakistani’s working in Silicon Valley •  Many Pakistani’s who have studied and worked abroad are returning to start their own ventures. •  There is an enormous amount of patriotism and family connections that wills a lot of people to return and build a better Pakistan. “The target is to contribute to the evolution of a more efficient business ecosystem in the country” Jamal Khan, Founder of Arpatech
  25. #pakstartupreport © 2014 All Rights Reserved Agenda 1. Why Pakistan 2. Names to Know 3. Culture 4. In Depth Look 5. Opportunities 6. Acknowledgements
  26. #pakstartupreport © 2014 All Rights Reserved In depth look “Recent Investments are testament to the increasing interest and confidence of investors in local startups. Investors can see beyond the short term issues in Pakistan and have foresight to capitalise on the long term future potential. @kayzafar
  27. #pakstartupreport © 2014 All Rights Reserved Infrastructure Entrepreneurs can overcome challenges in setting up basic infrastructure. •  Transport – Improving network of highways, although rail system is unreliable. •  Logistics –Courier companies ship COD packages to over 200 cities/towns. •  Internet – 3G & 4G recently launched. Coverage of rural areas is still patchy. •  Electricity – Generators compensate for frequent power cuts •  Payments - Low penetration of credit and debit cards means most orders are via COD. Pakistan is also the second highest country for credit card fraud.
  28. #pakstartupreport © 2014 All Rights Reserved People Academic Excellence •  With about 12,500 Pakistanis said to be working in Silicon Valley, local universities are producing some of the most sought after talent in the world. Freelancing •  Pakistan lays claim to some of the world's best IT engineers and designers many of whom choose to go into freelancing. There are approximately 1 million freelancers working online in the country. Talent Costs Entry level Experienced Professional Engineer Salary (Yearly) $7k $12k Undergrad Salary (Yearly) $4k $8k MBA Salary (Yearly) $7k $12k
  29. #pakstartupreport © 2014 All Rights Reserved Policies One of the most liberal investment policies in the region •  No limit on equity so investors can hold 100% of the company with no local partner. •  100% repatriation of capital is allowed so all profits can be returned to the original investor. Prime Ministers Youth Business Loan •  The Government is offering local entrepreneurs loans of up to $20,000 with a fixed 8% interest cost including 1 year grace. •  50% of the loan is designated for female entrepreneurs.
  30. #pakstartupreport © 2014 All Rights Reserved Government Initiatives The Punjab IT Board (PITB) is pioneering entrepreneurship, m-governance and e-governance. •  Empowering workers with smartphones, the PITB is using custom apps to report the water levels within canals and monitor the spread of diseases. •  Using robot calls and SMS messaging, the PITB have implemented a Citizen Feedback Model as a proactive measure to curb corruption, improve service levels and customer engagement. •  The PITB is also behind the very successful Plan9, a startup incubator, Techhub, a freelancers co-working space, and PlanX an accelerator for already established companies.
  31. #pakstartupreport © 2014 All Rights Reserved Agenda 1. Why Pakistan 2. Names to Know 3. Culture 4. In Depth Look 5. Opportunities 6. Acknowledgements
  32. #pakstartupreport © 2014 All Rights Reserved Opportunities Building a business in Pakistan is like Germany, but only 20% more difficult. But we are in it to do whatever it takes, if we have to build a Pakistani Post, we build a Pakistani Post” Oliver Samwer, Rocket Internet
  33. #pakstartupreport © 2014 All Rights Reserved Search Google
 Google Classified OLX
 Asani Electronic Retail Homeshopping
 Shophive Job Listings Rozee Mustakbil AutoSales Pakwheels
 Carmudi Delivery FoodPanda
 EatOye Fashion Labels E-Store Real Estate Zameen
 Lamudi Payment EasyPaisa Omni Local Discovery KarachiSnob
 KiaSceneHai Group Buying Deal Today
 Lootlo Gaming Mindstorm Caramel Travel Chutti
 TourPlanner MicroWork KamataPakistan Groceries Aaramshop Pakistan Grocery Dining EatOye Olaround Ticketing Bookme KiaSceneHai Taxi/Carpool EasyTaxi
 Savaree Finance Eccountant Medicine Sehat Dawaai Music Streaming Plane Ticketing Recipe Rental ??? Saturated Mature Semi-mature Infancy Non-Existent Pakistan Commodity Innovation Map A map of Pakistan’s current market leaders in 25 commodity internet business models
  34. #pakstartupreport © 2014 All Rights Reserved Competition Lack of competition amongst Startups & Angels provide a great opportunity for entrepreneurs and investors alike. •  Classified are now facing stiff competition as Schibsted’s has just entered the local market and are looking to challenge Nasper’s OLX. •  There is competition in the ecommerce sector, however this is still primarily limited to the electronics market. For most players to make a dent in this market they will have to enter with significant funds.
  35. #pakstartupreport © 2014 All Rights Reserved Advice for Local Entrepreneurs Approach Incubators and Accelerators •  Plan9, The Foundation or Invest2Innovate are great instituitions to guide you through the first few months of operations. You will also have access to a variety of mentors who can provide invaluable advice. Participate in Startup Competitions •  Be sure to compete in events such as Startup Weekend, Launchpads, and Civic Hackathons. These are great platforms to test your ideas and may even help you find mentors. Be Optimistic •  Building a startup is always hard, be optimistic and keep at it. Remember if you chase money, it will run away from you, but if you keep working, the money will automatically follow!
  36. #pakstartupreport © 2014 All Rights Reserved Advice for Foreign Entrepreneurs Be Quick to Enter As Open Market Space is Quickly Disappearing •  If you are thinking of returning to start an internet business do it now and be quick to exploit all the opportunities currently available. Quickly Create A Professional Network •  Any foreign entrepreneur will be highly regarded so use it to your advantage. Be sure to mix and build relationships with the local community who will be more than happy to co-operate.
  37. #pakstartupreport © 2014 All Rights Reserved One of the Most Liberal Investment Policies in the Region •  There is no limit on equity and no limit to capital repatriation, so you can be the sole owner of the company and take away all the earnings. Need for Value Added Investors •  Investors with international connections as well as area expertise is crucial for local startups who are looking to expand abroad and to raise additional funds. Exits are virtually non-existent right now •  Regular dividend payment are likely after gaining profitability. The ecosystem is still young so a lot is expected to change in the coming years. Advice for Foreign Angels
  38. #pakstartupreport © 2014 All Rights Reserved Advice for Foreign Companies Have Reasonable Expectations as the Market is Still Growing •  Enter the market early to build your brand identity and team. Doing this will ensure that as the internet revolution takes place amongst the 180+ million people you will be strategically positioned for growth. Adapt your processes to the local environment •  SMS messaging is a lot more prevalent than email, so be sure to use it to build a relationship with your customer. There is no Intermediate Liability Protection •  Pakistan has no cybercrime bill, however the bill is passing through the Parliament and a Cyber crime agency will be established shortly.
  39. #pakstartupreport © 2014 All Rights Reserved Conclusion Pakistan will grow, the only uncertainty is the speed at which it does. We all know how fast China and India has grown. We also know that Pakistan is generally 5 years behind India in terms of growth and development. So now is the right time to start building your startups and investing in entrepreneurs within the country.
  40. #pakstartupreport © 2014 All Rights Reserved Pakistan Startup Wiki For the latest updates on the Pakistani Startup Ecosystem and our full Pakistan Startup Report, please visit: page/Pakistan
  41. #pakstartupreport © 2014 All Rights Reserved Acknowledgements
  42. #pakstartupreport © 2014 All Rights Reserved Special Thanks To
  43. #pakstartupreport © 2014 All Rights Reserved Thanks for reading! FACEBOOK Twi,er   Email