The Karachi-based edtech company – Maqsad has raised $2.8 million in an oversubscribed seed round led by Speedinvest GmbH, one of Europe’s largest seed investors, and existing backer Indus Valley Capital, according to co-founder Rooshan Aziz. Stellar Capital, Alter Global and angel investors also participated.
Pakistan’s Maqsad raised the nation’s largest funding round by an education technology provider, showing that some startups in the nascent market are attracting investors despite a global venture financing slump.
Rooshan Aziz – co-founder of Maqsad said in an interview:
The ecosystem is going through a bit of a shake, but the companies which you know are solving fundamental basic problems, they’ll survive
Taha Ahmed, co-founder of Maqsad added:
This is an interesting time for edtech because globally the hype has kind of settled down after Covid. So only serious companies are being funded in this space.
The mobile-only service targets students on grades nine to twelve and offers cheaper rates than brick-and-mortar tutoring companies. Its services include a feature that allows students to take a photo of a question and receive an answer instantly.
The app has been downloaded more than a million times and it has answered 4 million queries in the past 6 months. The startup can impact millions of students and become one of the most successful businesses in Pakistan, said Philip Specht, a partner at Speedinvest, which has one edtech unicorn in its portfolio.
The startup was founded by high-school friends Taha Ahmed and Aziz, who went to the London School of Economics and worked in the city before returning to Karachi to start the venture. The startup will start monetization in the coming months and may partner with other public and private institutions, Aziz said.
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