Is Karachi a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Karachi has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Karachi gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Karachi

Funding is one of the most critical ingredients in building a successful startup – and Karachi offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

The early-stage funding scene for startups in Karachi is navigating a challenging period, despite the city being a significant tech hub. While notable VC firms like Indus Valley Capital, Fatima Gobi Ventures, and TMT Ventures are active, focusing on sectors like fintech and e-commerce, the overall investment landscape saw a significant downturn in 2024. According to Data Darbar, startup funding in Pakistan plummeted by 70% in 2024 compared to 2023, reaching its lowest point since at least 2018. The number of deals also dropped sharply. This indicates a more cautious approach from investors, although the average deal size for those that did close actually increased. Challenges include a persistent seed-stage funding gap, regulatory complexities, and broader economic risks. Government initiatives like the Pakistan Startup Fund, managed by Ignite, aim to help by co-investing alongside VCs, and National Incubation Centers (NICs) in places like Karachi provide crucial early support and access to networks. Angel networks also exist, connecting entrepreneurs with potential early backers.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Karachi has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Karachi has a growing startup and innovation culture, ranking as Pakistan's top startup ecosystem. The city features numerous coworking spaces catering to freelancers, startups, and larger teams. Tech events and conferences are regularly held, fostering networking and showcasing innovation. Entrepreneurial activity is significant, particularly in Fintech, Ecommerce & Retail, and Software & Data sectors. Support for startups exists through incubators and accelerators like IBA CED and National Incubation Center Karachi. These programs offer structured support, mentorship, and resources, with some providing tailored coaching for early-stage ventures, indicating a mix of standardized programs and personalized assistance.

For many entrepreneurs, the energy and resources available in Karachi can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Karachi, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Karachi is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Karachi has a significant talent pool for startups, supported by numerous educational institutions like the University of Karachi, NED, Iqra University, and IBA, which offer relevant programs and even incubation centers. The city produces a steady flow of skilled graduates, particularly in IT, software development, data science, and engineering. While a skills gap exists in some areas, vocational training institutes and specialized courses help address this. Local talent, known for its adaptability and entrepreneurial spirit, contributes to innovation and the growth of various sectors, including tech, logistics, and digital services. Incubators and accelerators further nurture this talent, providing mentorship and resources crucial for entrepreneurial growth.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Karachi can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Karachi boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Karachi offers a growing ecosystem for startups with various support systems. Infrastructure includes co-working spaces and incubation centers like the National Incubation Center (NIC) Karachi, which provide resources and networking opportunities. These hubs offer mentorship, training, and access to investors, helping startups refine strategies and secure funding. Government initiatives, such as the Pakistan Startup Fund backed by the Ministry of IT & Telecommunication (MOITT), aim to encourage investment by providing grants to startups that raise venture capital. Programs like "Startup Pakistan" also offer financial support, mentorship, and training. These resources collectively contribute to nurturing businesses and fostering innovation in the city.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Karachi. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Karachi Be Considered the Best Place to Launch a Startup?

There’s no doubt that Karachi provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Karachi face several challenges. Competition is significant in various sectors, with many startups concentrated in the city. While the cost of doing business can be relatively low compared to global tech hubs, operational costs, including potentially high rents for physical spaces, can strain limited budgets. Regulatory issues pose a notable hurdle, with complex processes, tax structures, and compliance requirements making it difficult for entrepreneurs to navigate the business landscape. Political uncertainty and inconsistent policymaking further add to the instability.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Karachi or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Karachi offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash