UK’s CDC invests in Pak fund

LAHORE: CDC Group (CDC), the UK’s development finance institution and impact investor, has made an anchor investment in Techxila Fund I, a fund managed by local venture capital (VC) firm Fatima Gobi Ventures (FGV), a statement said on Friday.

“CDC’s commitment will help boost Techxila Fund I’s investments in Pakistan-focused early stage startups, helping to drive transformational impact and spurring economic and social development in the country,” the statement said.

Increasing interest from international investors such as global venture capital firms, bodes well for Pakistani startups.

In the first half of 2021 alone, Pakistani startups raised more funding from venture capitals than the previous five years combined.

Despite a global pandemic, foreign funds accounted for over 70 percent of Pakistan’s total VC funding in 2020 and 2021.

CDC’s funds injection into Techxila would enable FGV to expand its investment portfolio across a myriad of verticals including FinTech, Logistics, EdTech, and HealthTech sectors. Such tech-enabled business models can contribute to job creation at scale and enhance consumer access to essential goods and services.

“By partnering with local venture capital firms such as FGV, CDC aims to catalyse domestic venture capital markets and channel funding to early-stage entrepreneurs,” it said.