Tech-health startup launches first PKR-denominated VC Fund

KARACHI: In a bid to empower Pakistan’s burgeoning tech industry and startup ecosystem, Sai Venture Capital Pvt. has unveiled the country’s first venture-capital fund denominated in local currency, marking a milestone seven years in the making.

Spearheaded by co-founder Ahsan Jamil, the Lahore-based company aims to secure $10 million in investments, primarily from local stakeholders. Jamil disclosed in an interview that the fund is already 40 percent committed and obtained regulatory approvals from Pakistan’s securities regulator just last month, Bloomberg reported on Friday.

According to Jamil, fostering a thriving ecosystem requires the presence of “local smart capital.” He emphasized the importance of local investors, especially as foreign funding has dwindled in recent times.

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Pakistan’s fledgling startup industry has garnered slightly over $700 million since 2021, as reported by Invest2Innovate. Notably, the majority of these funds came from foreign investors. The Pakistani currency has experienced significant fluctuations, depreciating by more than 40 percent during the same period.

This has compelled startups to chase aggressive growth targets to achieve returns in US dollar terms. Jamil cited an example of a startup that needed to grow by 100 percent to merely break even for foreign investors.

Ahsan Jamil, with two decades of experience working in the United States for companies including Aon Hewitt LLC (now Alight Inc.), made the strategic decision to return to Pakistan to establish this groundbreaking fund. Sai Venture Capital has already initiated several investments in the past year in partnership with key stakeholders.

The fund focuses on companies that provide services to enterprises in developed markets, along with startups dedicated to the fields of health, agriculture, and education. This initiative marks the first domestic venture capital fund to emerge in Pakistan since 2016, according to Ahmed Uzair, a partner at law firm AUC Law, which has been advising Sai Venture Capital on this pioneering endeavor.

The introduction of this local-currency venture capital fund represents a significant step forward for Pakistan’s startup ecosystem, bringing local investors to the forefront and reinforcing the nation’s commitment to fostering innovation and entrepreneurship.