BusinessKarachi

In 2022, numerous significant Pakistani startups underwent acquisitions.

Covid-19 packed and left numerous excellent prospects for startups and small tech firm acquisitions, making 2022 a very successful year for Pakistan’s tech sector. A $2.616 billion remittance was made by Pakistan’s IT sector. Revenue for the sector increased by 24 percent to $2.108 billion in 2021. Nasheed Malik, an information and communication technology (ICT) analyst at Topline Securities, said:

This is a significant accomplishment for Pakistan since it shows that the startup environment there is robust and prosperous. Initial public offerings (IPOs) in the stock exchange are not an option for Pakistani entrepreneurs at this time; mergers and acquisitions are used instead.

This is a significant accomplishment for Pakistan since it shows that the startup environment there is robust and prosperous. Initial public offerings (IPOs) in the stock exchange are not an option for Pakistani entrepreneurs at this time; mergers and acquisitions are used instead.

These startups’ management teams grow to their full potential before deciding to be acquired by larger companies in order to scale up.

10Pearls purchases software and digital businesses

In 2022, 10Pearls, perhaps Pakistan’s largest IT company, purchased two IT setups: Whiz, a software development company based in Peru, and Pixel506, a digital agency based in Costa Rica but originally from Brooklyn. Whiz is a rapidly expanding software development firm that specializes in offering clients in North America agile software development, innovation services, and technological skills.

Systems Ltd. Acquired NdcTech 

Systems Limited, widely regarded as Pakistan’s largest tech service provider, purchased NdcTech, one of the top IT & Consulting firms in the banking technology industry.

Under the same CEO, Ammara Masood, NdcTech is now a fully owned subsidiary of Systems Limited. In 2022, the IT business and a subsidiary also received numerous accolades on a global scale. At the IBS Intelligence Global Fintech Innovation Awards 2022, NdcTech got the best channel/platform implementation prize, while Systems Limited received the Forbes Asia’s Best Under A Billion title for the third consecutive year.

Systems Limited’s acquisition of NdcTech has improved the synergy between the two businesses, enabling them to take advantage of one another’s strengths to provide cutting-edge capabilities for banks and FIs. As a result, NdcTech has been able to expand its reach into fresher, untouched areas in the Middle East, Africa, APAC, and European countries.

Call Courier is acquired by PostEx

To increase its logistics offering and become the biggest e-commerce service provider in the nation, PostEx, a fintech operator, purchased Call Courier, a provider of logistics services. With Call Courier’s extensive countrywide logistics network, PostEx’s upfront payments, revenue-based finance, and technology formed a powerful synergy. With 1.3 million consumers and more than 8,000 merchants spread over 500 locations in Pakistan, PostEx has increased its reach. Its loan book has increased to $12 million per month.

Purchase of a Web Hosting Company by US-based DigitalOcean Holdings Inc.

Cloudways, a Pakistani web hosting company, was purchased by US-based cloud services provider DigitalOcean Holdings Inc. for $350 million. This is one of the largest acquisitions of a Pakistani startup by an American company in terms of value. It will simplify digital development procedures for small and medium-sized businesses.

Swiss business acquires Pakistani fintech company

A Swiss business named ZoodPay purchased Tez Financial Services, a Pakistani fintech company, in whole (Tez). An online financing platform for e-commerce in the Middle East and Central Asia is called ZoodPay.

Experts claim that by making this transaction, the company is establishing itself as a significant new player in Pakistan’s digital lending and fintech sectors. Leading international and strategic investors, including Zain, the top MENA telecom company, and London-based VC Fund Sturgeon Capital, have helped ZoodPay raise $50 million to date.

All of these acquisitions show that businesses founded in Pakistan are growing more self-assured, financially stable, and managerially outspoken. In 2022, an increase in merger and acquisition (M&A) activity became a noticeable trend, with international companies buying local players, local players merging with or buying other local players, and, in one instance, a local player buying an international player, according to a report by Invest2Innovate (i2i) Ventures.

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