A UK-based financial institution called CDC Group has announced that it has made an anchor investment in Techxila Fund I — a fund managed by venture capital firm Fatima Gobi Ventures.
The institution said that it aims to help Fatima Gobi Ventures (FGV) promote domestic venture capitalist markets and direct funding to early-stage startups.
It said in a statement that its commitment will “help to boost Techxila Fund I investments in Pakistan-focused early stage startups, helping to drive transformational impact and spurring economic and social development in the country”.
CDC Group revealed that it seeks to expand FGV’s investment portfolio across a diverse range of verticals. It also aims to support FGV in focusing on Environmental, Social and Governance (ESG) practices in its investments. It added that FGV has already invested in more than 40 percent of Pakistan’s recent record-breaking funding deals.
The venture capital firm’s Techxila Fund I backed logistics startup Airlift’s seed round in August 2019, after which the company raised $85 million in a record-breaking Series B round for a Pakistani startup.
Techxila also backed online marketplace Tajir in June, which raised a US$17 million Series A round led by US VC Kleiner Perkins.
The fund then participated in fintech startup TAG’s $12 million follow-up seed round, the largest seed round in the Middle East, North Africa, Afghanistan, and Pakistan region.
The General Partner for FGV, Ali Mukhtar, said, “We have been the most active investor in Pakistan in 2021 and our companies are also strong ESG proponents, whether it is bringing economies of scale to SME retailers, digitizing local supply chains, or building Pakistan’s first digital retail bank”.
“Now, FGV can leverage CDC’s expertise in ESG, sustainability, and impact matters for the benefit of Techxila’s portfolio companies,” he added.
CDC Group’s Country Director, Pakistan, Habib Yousuf, stated that the institution is excited to work with FGV to support Pakistan’s nascent startup sector.
“Pakistan is a key VC market for CDC, due to the depth of entrepreneurial talent in a large and growing domestic market, with numerous opportunities for delivering impact through tech-enabled business models,” he said.