Crowdinvesting - Pakistan

Pakistan

Highlights

The Crowdinvesting market in Pakistan is projected to reach a total transaction value of US$3.38m in 2024.
When compared globally, it is evident that the United Kingdom leads with the highest transaction value of US$608m in 2024.
Pakistan's growing interest in Crowdinvesting reflects a shift towards innovative capital-raising methods in the country's financial market.

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Crowdinvesting market in Pakistan is experiencing significant growth and development.

Customer preferences: Pakistan is a country with a large young population, high smartphone penetration, and increasing internet access. This has led to a growing interest in alternative investment opportunities, such as Crowdinvesting. Investors in Pakistan are attracted to the potential high returns and diversification offered by Crowdinvesting platforms. They are also drawn to the convenience and accessibility of online investment platforms, which allow them to invest from the comfort of their homes.

Trends in the market: One of the key trends in the Crowdinvesting market in Pakistan is the emergence of platforms that cater specifically to the needs and preferences of local investors. These platforms offer investment opportunities in sectors that are popular in Pakistan, such as real estate, technology, and agriculture. They also provide localized content and customer support in local languages, which helps to build trust and attract a wider customer base. Another trend in the market is the increasing participation of women in Crowdinvesting. Traditionally, women in Pakistan have been less involved in investment activities. However, with the rise of online investment platforms, women are now able to overcome traditional barriers and participate in the market. This trend is expected to continue as more women become aware of the opportunities offered by Crowdinvesting.

Local special circumstances: Pakistan has a large unbanked population, with a significant portion of the population lacking access to formal banking services. This has created a unique opportunity for Crowdinvesting platforms to fill the gap and provide financial services to underserved communities. These platforms offer alternative investment and financing options, allowing individuals to invest and raise funds without the need for traditional banking services.

Underlying macroeconomic factors: The growth of the Crowdinvesting market in Pakistan is also influenced by underlying macroeconomic factors. The country has been experiencing steady economic growth, which has led to an increase in disposable income and a growing middle class. This has created a larger pool of potential investors who are looking for investment opportunities to grow their wealth. Additionally, the government of Pakistan has been supportive of entrepreneurship and innovation, which has created a favorable environment for the development of Crowdinvesting platforms. The government has implemented policies and initiatives to promote startups and small businesses, which has attracted investors and entrepreneurs to the market. In conclusion, the Crowdinvesting market in Pakistan is developing rapidly due to customer preferences for alternative investment opportunities, increasing participation of women, local special circumstances, and underlying macroeconomic factors. The market is expected to continue growing as more individuals become aware of the benefits of Crowdinvesting and as the government continues to support entrepreneurship and innovation.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.