LAHORE: Gobi Partners, a leading pan-Asian venture capital firm, has officially announced the $50m Techxila Fund II alongside the signing of a memorandum of understanding (MoU) with the Bank of Punjab (BoP).

This strategic partnership aims to foster entrepreneurship and strengthen economic cooperation in Pakistan. The announcement has been made during the Pakistan Investment Conference in Shanghai, part of Punjab Chief Minister Maryam Nawaz’s visit to China.

The Techxila Fund II aims to empower startups in Pakistan, with a focus on high potential sectors such as fintech, e-commerce, logistics and supply chain, health tech, and SaaS. This initiative supports under-served entrepreneurs, encourages innovation, and drives sustainable growth in emerging markets.

The plan to launch $50m Techxila Fund II builds on the success of Gobi’s first Pakistan-focused venture capital fund (Techxila Fund I), which has invested in 22 startups to date. These portfolio companies have collectively impacted 3.2 million low-income households, generated a total revenue of $245m in 2023, and issued loans worth $54m during the same year.

The MOU with BoP establishes a robust framework to advance Pakistan’s entrepreneurial ecosystem. Key areas of collaboration include providing debt financing at preferential rates, equity investments in high-growth companies, and access to banking credit lines for scaling operations. The partnership aims to create tailored financial products for startups, promote collaborative marketing efforts, and offer mentorship programs.

Maryam Nawaz Sharif, Chief Minister Punjab, Pakistan, commented: “The launch of this fund will help catalyze innovative startups, create jobs, and strengthen our digital and technological landscape.”

Zafar Masud, President and CEO, Bank of Punjab, added: “This collaboration represents an important step toward strengthening Pakistan’s startup ecosystem and unlocking new opportunities for growth and innovation.”

Thomas G. Tsao, Co-Founder and Chairman of Gobi Partners, commented “The launch of Techxila Fund II and our partnership with the Bank of Punjab reflect our commitment to fostering innovation and supporting entrepreneurs in Pakistan. Together, we aim to create sustainable economic opportunities and drive long-term growth.”

Published in Dawn, December 14th, 2024