Pakistan Has ‘All the Right Ingredients’ for Tech Growth, Says inDrive CEO

Pakistan has the potential to emerge as a strong technology ecosystem, supported by talented founders and a rapidly maturing startup environment, according to Arsen Tomsky, founder and CEO of inDrive.

His remarks accompany a new research report titled “The Rapid Rise of Pakistan Tech,” released by inDrive in partnership with Dealroom.co. The study highlights Pakistan as one of the most promising emerging markets within what analysts describe as the “New Frontier” of global startup ecosystems.

According to the report, Pakistan’s startup ecosystem has expanded significantly over the past few years. The combined enterprise value of local startups has surpassed $4 billion, marking a growth of about 3.6 times since 2020.

Tomsky noted that markets previously considered emerging, such as those within the BRICS group, have demonstrated strong growth over the last two decades. He believes Pakistan reflects similar characteristics seen in other rising startup ecosystems.

“All the right ingredients are present,” Tomsky said, pointing to strong local founders, increasing ecosystem maturity, and growing operator involvement. He added that continued investment, supportive regulations, and persistence among entrepreneurs could enable Pakistan to achieve significant technological growth.

The report also states that Pakistan’s expansion has outpaced several established global technology hubs in terms of growth rates. Markets such as New York, Paris, and Dubai were mentioned as examples where ecosystem growth has been comparatively slower in recent years.

Globally, technology entrepreneurship is no longer limited to traditional startup hubs. More than 70 cities across emerging markets have produced at least one billion-dollar technology company since 2015, reflecting a major shift in the global innovation landscape.

Pakistan’s digital foundation is another factor supporting its growth potential. Around 68 percent of the population owned a smartphone during 2023–24, while mobile broadband coverage reached roughly 81 percent of the population. However, active mobile internet usage remains lower, ranging between 23 and 29 percent, suggesting considerable room for digital expansion.

The country’s telecom sector also continues to grow rapidly. Pakistan recorded approximately 190 million active mobile SIM connections in early 2025, representing around 75 percent of the population. Internet penetration currently stands at about 45.7 percent, with nearly 116 million internet users nationwide.

Demographics further strengthen Pakistan’s technology prospects. The country has a young population, with nearly 59 percent of citizens aged between 15 and 64. The median age is around 21 to 22 years, providing a large and expanding workforce capable of supporting technology-driven industries.

International investors are gradually increasing their interest in Pakistan’s startup ecosystem, particularly in sectors such as fintech and mobility. Venture initiatives including inDrive Ventures and Veon Ventures have already begun participating in the market.

Despite this progress, Pakistan remains significantly underfunded compared with regional peers. Startup capital in Pakistan is estimated at around $57 million, while neighboring India attracts billions of dollars in venture funding annually.

One example highlighted in the report is the investment by inDrive Ventures in Krave Mart, a rapid grocery delivery platform launched in 2021. The collaboration aims to leverage inDrive’s logistics expertise and platform experience to scale the service in major Pakistani cities.

The study also identifies women-led startups as a high-potential but underfunded segment of Pakistan’s tech ecosystem. The country recorded 288 applications for the Aurora Tech Award in 2025, a notable share out of roughly 3,400 global submissions.

Startup activity in Pakistan has accelerated sharply over the past decade. Between 2011 and 2015, around 121 startups emerged in the country. That number increased to 317 between 2016 and 2020 and further surged to 518 between 2021 and 2025.

The report concludes that Pakistan’s technology ecosystem is entering a critical growth phase. With rising founder experience, expanding digital infrastructure, and increasing international interest, the next stage will depend largely on improved access to investment capital and continued long-term support for entrepreneurs.