Capital Raising - Pakistan | Statista Market Forecast

The country in Pakistan is expected to witness a Total Capital Raised in the Capital Raising market market reaching US$20.42m by 2024.
Traditional Capital Raising is set to maintain its dominance in the market with a projected volume of US$15.24m in 2024.
When compared globally, the United States is anticipated to generate the most Capital Raised, amounting to US$195.4bn by 2024.
Pakistan's Capital Raising market is seeing a surge in private equity investments, indicating growing investor confidence in the country's economic prospects.

Definition:

The Capital Raising market refers to the process of raising additional capital to launch, finance, and grow a business or a project. Traditional Bank Loans are not considered in the market.

Structure:

The market consists of two segments:
- The Traditional Capital Raising market refers to traditional venture financial services for startups and emerging companies that do not yet possess a positive track record, but have exceptional growth potential.
- The Digital Capital Raising market refers to digital financial services for business customers and private borrowers.
The market data comprises of the amount of capital raised, number of deals, and average deal size.

Additional information:

Besides Traditional Bank Loans, there are various alternative forms of debt and equity financing that help businesses, especially startups and emerging companies who seek additional funds to support their business' operation and growth. Nowadays, owing to the rapid growth rate of startups and emerging companies, these financial services are more attractive and popular.
Key players in this market are companies such as Squoia Capital, Hercules Capital, and Indiegogo

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Venture Capital
Venture Debt
Digital Capital Raising

Traditional Bank Loans

The Capital Raising market in Pakistan has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances.

Customer preferences: Investors in Pakistan are increasingly looking for alternative investment options to diversify their portfolios and generate higher returns. This has led to a growing demand for capital raising activities, such as initial public offerings (IPOs), rights issues, and private placements. Additionally, investors are becoming more risk-averse and are seeking investment opportunities in sectors that have shown resilience and growth potential, such as technology, healthcare, and renewable energy.

Trends in the market: One of the key trends in the capital raising market in Pakistan is the increasing participation of retail investors. Previously, capital raising activities were predominantly driven by institutional investors. However, with the introduction of online trading platforms and the ease of access to information, retail investors are now actively participating in IPOs and other capital raising activities. This trend has not only increased the liquidity in the market but has also provided companies with a broader investor base. Another trend in the market is the rise of Islamic finance. Pakistan has a significant Muslim population, and Islamic finance principles are gaining popularity among investors. As a result, companies are increasingly opting for Sharia-compliant capital raising options, such as Islamic bonds (Sukuk) and Islamic mutual funds. This trend has attracted both domestic and international investors who are seeking ethical investment opportunities.

Local special circumstances: Pakistan has a young and growing population, which has led to an increase in domestic consumption and economic growth. This has created opportunities for companies to raise capital to expand their operations and meet the growing demand. Additionally, the government of Pakistan has implemented several initiatives to promote entrepreneurship and attract foreign direct investment, which has further fueled the capital raising market.

Underlying macroeconomic factors: The capital raising market in Pakistan is also influenced by underlying macroeconomic factors. The country's stable macroeconomic environment, including low inflation and interest rates, has made it an attractive destination for investors. Furthermore, the government's focus on infrastructure development and economic reforms has created a favorable business environment, encouraging companies to raise capital to finance their expansion plans. In conclusion, the capital raising market in Pakistan is experiencing significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As investors seek alternative investment options and companies look to expand their operations, the capital raising market is expected to continue to thrive in the coming years.

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average of deal size and the number of deals.

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 data from OECD, 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, CPI, number of small and medium-sized enterprises (SME), new businesses registered (number) . 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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

Venture capital is the term used to call the financial resources provided by investors to startup firms and small businesses that show potential for long-term growth. It has become a very important source of capital for entrepreneurs, who often have problems with financing their needs through risk-averse banks. Venture capital investments incorporate a high level of risk as only some of the VC-backed companies develop into successful and highly profitable businesses. In 2020, the leading venture capital backed company worldwide was the Manbang Group, which based in Nanjing, China.