Pakistan’s startup ecosystem saw a sharp funding decline in Q3 2025. Startups raised $15.2 million across six disclosed deals, according to data compiled by experts. This marks a significant drop from $58 million secured in Q2 2025, signaling a cautious funding environment.
Key Deals Shaping the Quarter
Despite the slowdown, a few standout rounds dominated the landscape. Trukkr, a logistics platform, secured around $10 million through a hybrid equity and debt structure. BusCaro, a mobility startup, followed with a $2 million hybrid round.
Web3 startup Myco raised approximately $1.5 million, while fintech player Metric closed a $1.3 million seed round. ScholarBee secured $350,000 through a convertible note. Meanwhile, Pakhtun Wardrobe, a fashion startup, raised $31,000 in equity.
Additionally, three startups from the i2i Scale accelerator[1] secured undisclosed funding. This brought the total deal count to nine, making Q3 2025 the most active quarter since late 2024 in terms of deal volume.
Ecosystem Trends: Hybrid Financing Takes Center Stage
A notable shift toward hybrid financing models emerged this quarter. Startups increasingly combined equity, debt, and convertible notes to reduce dilution and diversify funding sources. Investors, on the other hand, used these structures to manage risk amid uncertain economic conditions.
The quarter also reflected sector diversification. Unlike earlier periods dominated by single sectors, Q3 2025 saw activity across logistics, mobility, fintech, Web3, edtech, fashion, and digital health.
A Cooling Market with Evolving Strategies
The steep decline from Q2 highlights a cooling investment climate. However, the increased deal activity and funding model innovation indicate a maturing ecosystem rather than a collapse. Industry observers believe this shift could build resilience and broaden Pakistan’s startup base over time.
Data from multiple sources confirm these trends. While equity funding slowed, hybrid and undisclosed rounds kept deal flow steady. The next quarters will reveal whether this strategic pivot leads to sustainable growth.
References
- ^ i2i Scale accelerator (invest2innovate.com)