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Pakistan’s startup ecosystem continued to attract investor interest during the third quarter of 2025, securing $15.2 million across six disclosed deals

The amount is a steep drop from $58 million in Q2, according to a new report by Invest2Innovate (i2i). The quarter’s biggest raise came from Trukkr, which bagged $10 million in a mixed equity and debt round.

It was followed by BusCaro’s $2 million hybrid deal, Myco’s $1.5 million Web3 raise, Metric’s $1.3 million fintech seed round, and ScholarBee’s $350,000 convertible note. Smaller but notable funding came from Pakhtun Wardrobe, which raised $31,000 in equity.

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Additionally, three startups from the i2i Scale accelerator secured undisclosed funding rounds, bringing the total to nine deals, making it the busiest quarter since late 2024.

Unlike past quarters dominated by single mega deals, Q3 reflected greater diversity in both sectors and deal sizes. Activity spanned logistics, mobility, fintech, Web3, edtech, fashion, and digital health, signaling a maturing ecosystem. Logistics led with Trukkr’s raise, followed by mobility and fintech.

A key trend this quarter was the rise of hybrid financing models. Out of six disclosed deals, four — Trukkr, BusCaro, Myco, and ScholarBee — combined equity, debt, or convertible notes. Only Metric and Pakhtun Wardrobe closed traditional equity rounds.

This marks a significant shift from earlier quarters, where pure equity deals dominated. Founders are now opting for more flexible funding structures that minimize dilution, while investors are testing models that balance protection and long-term upside — an indicator of a maturing investment landscape.

Q3 also sustained the positive momentum for women-led or co-founded startups. Following MedIQ’s $6 million raise in Q2, the trend highlights growing gender diversity, even if deal sizes remain smaller than male-led ventures.

Investor participation was balanced in volume but uneven in value. Local investors — including Accelerate Prosperity, Salt Ventures, i2i Ventures, and several angel investors — backed early-stage rounds like BusCaro, ScholarBee, and Pakhtun Wardrobe.

In contrast, international investors such as Yango Ventures (UAE), Daman Investments (UAE), Cartography Capital (US), 500 Global (US), A-Typical Ventures (Qatar), Plus VC (Abu Dhabi), and Tim Draper (US) dominated larger deals, accounting for most of the disclosed capital.

While global confidence in Pakistani founders remains strong, analysts say building deeper local growth capital is essential for long-term sustainability.

The report concludes that six startups made up nearly all disclosed funding this quarter, showcasing the country’s ability to produce investable ventures across multiple sectors.

However, it also points to a persistent gap — the ecosystem needs more mid-sized rounds to bridge the space between small seed tickets and large Series A investments.

Tesla is being investigated by the US government after reports the firm’s self-driving cars had broken traffic laws, including driving on the wrong side of the road and not stopping for red lights.

It said it was aware of 58 reports where the electric cars had committed such violations, according to a filing from the National Highway Traffic Safety Administration (NHTSA).

An estimated 2.9 million cars equipped with full self-driving tech will fall under the investigation.

Tesla, whose boss Elon Musk recently became the world’s first half-trillionaire, has been approached for comment.

The NHTSA’s preliminary evaluation will “assess the scope, frequency, and potential safety consequences” of the “Full Self-Driving (Supervised)” mode.

In this mode – which costs extra for Tesla owners – the cars can make lane changes and turns, but drivers must always be alert to take over at any time.

According to the NHTSA report, there were six crashes caused by cars stopping at a traffic light before setting off while the light was still red.

Four of the crashes resulted in injuries.

The traffic authority said Tesla had taken action “to address the issue” of cars going through red lights at a particular intersection in Maryland, where the problem repeatedly occurred.

The agency will also investigate reports of vehicles going into the opposite lane when making a turn.

It said some of the reported incidents gave “little notice to a driver or opportunity to intervene”.

Tesla is already facing an investigation from the NHTSA over the cars’ door locking mechanisms, after cases where children were reportedly trapped inside Model Y cars.

In some instances, car owners chose to smash the windows to let them out.

Tesla recently unveiled cheaper models of two of its most popular cars, as it tries to compete with cheaper electric vehicles often made by Chinese companies.

Its boss Elon Musk was formerly a close ally of President Donald Trump before a public falling-out earlier in the year.

In July, he announced the formation of a new political party, the America Party, in an attempt to rival the Republicans and Democrats.

The following sentence might make a globalist cry out for joy: A toy that is manufactured by a Chinese company in Vietnamese factories, designed by a Dutch artist in Belgium, inspired by indie toy culture in Hong Kong, and made viral thanks to a Thai K-pop star, has turned into the biggest Gen-Z cultural trend of 2025.

That abomination of a sentence is the story of Labubu, the creepy-cute stuffed monster that swept the world this summer. You must have seen the trend by now, but most people are still unaware of the global, decade-long story that led up to it. Last week, I published a feature story about my journey into the heart of Labubu, how this cultural mania moment was created, and where it may go from here.

It’s an inherently international story, but it’s not the first time we’ve seen it. Think about how the world fell for Pokemon Go or Kpop bands like BTS and Blackpink. These are all examples of regional cultural powerhouse industries successfully finding global audiences for their work. What’s new about Labubu, however, is that it’s the first time a Chinese company was able to engineer this level of success and cultural impact.

Sure, there are always coincidences at work for a success of this scale, but the more I reported on this story, the more I also realized the historical and economic reasons why Labubu, and the toy company behind it, Pop Mart, ended up in this place. In many ways, it resembles other Chinese tech companies that went from counterfeit producers to international name brands, moving up the value chain as they transformed manufacturing experience into valuable technological knowhow.

The story of Labubu begins in Hong Kong in the 1970s and early ‘80s, when the city became a manufacturing hub for toys. From Mattel and Disney to Japan’s Bandai, almost every major toy company was outsourcing production to factories in Hong Kong, due to the low labor costs there.

Howard Lee, the founder of a Hong Kong toy studio called How2Work, told me how that period of history shaped his childhood. “Many parents would go to factories and come home with outsourced gig work like hand painting toys at home,” he says. It was also easy for people to buy toys with cosmetic or functional imperfections from the factories directly, so a generation of children like Lee grew up with relatively easy access to flawed dolls and other toys, which made them yearn more for the better ones they couldn’t afford.