Gobi Partners announces Techxila Fund II & signs MOU with Bank of Punjab to drive economic cooperation

Gobi Partners, a pan-Asian venture capital firm, has officially announced the $50 million Techxila Fund II alongside the signing of a Memorandum of Understanding (MOU) with the Bank of Punjab (BoP). This strategic partnership aims to foster entrepreneurship and strengthen economic cooperation in Pakistan.

The announcement has been made during the Pakistan Investment Conference in Shanghai, part of Punjab Chief Minister Maryam Nawaz Sharif’s historic visit to China from Dec 8 to 15.

The delegation visits key cities, including Beijing, Shanghai, Shenzhen and Guangzhou, focusing on collaboration in information technology, healthcare, environmental management, and climate change. The visit aims to foster deeper trade and investment ties while drawing insights from China’s development model to inform future cooperation, Gobi said in a statement on Monday.

The Techxila Fund II aims to empower startups in Pakistan, with a focus on high potential sectors such as fintech, e-commerce, logistics and supply chain, health tech, and SaaS. This initiative supports underserved entrepreneurs, encourages innovation, and drives sustainable growth in emerging markets.

The launch of $50 million Techxila Fund II builds on the success of Gobi’s first Pakistan-focused venture capital fund, which has invested in 22 startups to date.

These portfolio companies have collectively impacted 3.2 million low-income households, generated a total revenue of $245 million in 2023, and issued loans worth $54 million during the same year.

Notable investments include PriceOye, Pakistan’s second-largest e-commerce platform; DealCart, a social commerce platform delivering affordable groceries; and Abhi, a financial platform providing innovative credit solutions for businesses and individuals, among others.

The fund has also attracted backing from institutional investors such as BII and other Gobi investors, showcasing its ability to support high-impact ventures that drive growth and create value in underserved markets.

The MOU with BoP establishes a robust framework to advance Pakistan’s entrepreneurial ecosystem. Key areas of collaboration include providing debt financing at preferential rates, equity investments in high-growth companies, and access to banking credit lines for scaling operations.

The partnership aims to create tailored financial products for startups, promote collaborative marketing efforts, and offer mentorship programs.

Additionally, BoP will gain early access to selected deal flow from Gobi, enabling it to identify promising investment opportunities aligned with its strategic goals.

Her Excellency Maryam Nawaz Sharif, Chief Minister Punjab, Pakistan, commented “I would like to extend my deepest gratitude to the team at Gobi Partners for their unwavering support and commitment to Pakistan’s startup ecosystem. The launch of this $50 million fund demonstrates your strong belief in the resilience and potential of Pakistan’s entrepreneurial community and will help catalyze innovative startups, create jobs, and strengthen our digital and technological landscape.”

She also proposed to develop a strategic framework for permanent collaboration and partnership between Gobi Partners and Government of Punjab.”

Thomas G. Tsao, Co-Founder and Chairman of Gobi Partners, commented “The launch of Techxila Fund II and our partnership with the Bank of Punjab reflect our commitment to fostering innovation and supporting entrepreneurs in Pakistan. Together, we aim to create sustainable economic opportunities and drive long-term growth.

Zafar Masud, President and CEO, Bank of Punjab, added “This collaboration represents an important step toward strengthening Pakistan’s startup ecosystem and unlocking new opportunities for growth and innovation.”