Pakistan’s technology ecosystem has gradually begun attracting global attention as digital adoption expands, startup activity accelerates, and a young, tech-savvy population enters the workforce. While the country has long been viewed as an undercapitalised market, new research suggests the foundations for a stronger innovation landscape are already taking shape. A recent report examining Pakistan’s startup environment highlights the scale of this emerging opportunity, pointing to growing enterprise value, increasing founder experience, and expanding digital infrastructure as key indicators of momentum.
A report titled The Rapid Rise of Pakistan Tech, released by inDrive in collaboration with startup intelligence firm dealroom.co, offers a closer look at the country’s evolving technology landscape and the opportunities emerging within it. The study places Pakistan among the most promising markets within what it describes as the global New Frontier of startup ecosystems, while also highlighting the role that experienced operators and investors can play in accelerating this growth.
According to the report, Pakistan’s startup ecosystem has expanded significantly in recent years. The combined enterprise value of Pakistani startups now exceeds $4 billion, reflecting a 3.6-fold increase since 2020. The study notes that this pace of growth has outperformed several established markets, including India and technology hubs such as New York, Paris and Dubai during the same period.
Startup activity in Pakistan has also accelerated significantly over the past decade. The report notes that 121 startups emerged between 2011 and 2015, followed by 317 between 2016 and 2020, and 518 between 2021 and 2025. Key sectors driving this growth include fintech, transportation and marketing, reflecting increasing entrepreneurial activity and ecosystem maturity.
Pakistan’s potential is closely linked to the expansion of its digital infrastructure. Smartphone ownership reached roughly 68% of the population during 2023–24, while mobile broadband coverage extended to around 81%. However, active mobile internet usage remains between 23% and 29%, indicating significant room for further digital adoption and growth of platform-based services.
Connectivity indicators also continue to improve. Pakistan recorded approximately 190 million active mobile SIM connections in early 2025, covering nearly 75% of the population, while internet penetration stands at around 45.7%, translating to about 116 million users.
Demographics further strengthen the country’s technology outlook. Around 59% of Pakistan’s population falls within the working-age group of 15 to 64, with a median age of approximately 21–22 years, creating a large and expanding workforce capable of supporting the development of digital services and startups.
Despite these encouraging indicators, the report points to a significant capital gap compared with regional peers. Startup funding in Pakistan currently totals around $57 million, including approximately $15 million directed toward breakout-stage companies. In contrast, startup capital in India amounts to roughly $3 billion, with about $6 billion flowing into later-stage companies.
The report suggests that this funding gap also creates an opportunity for early investors and experienced operators to play a defining role in shaping the ecosystem’s next phase of growth. In this context, operator-led investors such as inDrive Ventures are increasingly engaging with Pakistan’s startup landscape.
One example highlighted in the study is inDrive Ventures’ investment in Pakistani quick-commerce platform Krave Mart. The partnership reflects how global operators can support local startups by providing platform expertise, logistics capabilities and operational experience, helping them scale across major urban markets.
The report identifies women-led startups as a high-potential but underfunded segment. Pakistan accounted for 288 applications to the Aurora Tech Award in 2025 out of roughly 3,400 global submissions, representing a notable share given the size of the ecosystem. Many of these startups operate in sectors such as EdTech, artificial intelligence, health technology, energy and sustainability, and gaming, with several addressing broader development challenges linked to the United Nations Sustainable Development Goals, including education, innovation and gender equality.
The findings also place Pakistan within a broader global shift in innovation, where technology entrepreneurship is expanding beyond traditional startup centres. More than 70 cities across emerging ecosystems have now produced at least one $1 billion technology company, marking a tenfold increase since 2015. These New Frontier ecosystems collectively attract around 11% of global venture capital, compared with less than 4% fifteen years ago, and together represent more than $2 trillion in enterprise value.
Another trend noted in the study is that while many Pakistani founders establish their startups locally, a significant share of venture capital continues to be raised abroad due to the limited availability of domestic funding.
Overall, the report suggests that Pakistan’s startup ecosystem is entering a critical phase of development. With a growing pool of founders, expanding digital connectivity and increasing engagement from global operators such as inDrive, the country is gradually building the foundations of a more mature technology ecosystem.