Gaper.io Unveils Rs. 500 Million Fund to Support IT Companies Navigating Recession

Gaper.iohas announced the establishment of theGaper Technology Fund, with an initial allocation ofRs. 500 million(Fund I) set for deployment throughout 2023. This significant initiative marks a strategic shift in investment focus within the tech ecosystem.

Traditionally, funding and business growth support have largely concentrated on startups and companies in their formative stages. In contrast, the Gaper Technology Fund is specifically designed to bolsterexisting IT service companies. This targeted approach comes at a crucial time as the global IT sector, often perceived as resilient to external shocks, has experienced a slowdown due to worldwide recessionary pressures combined with local economic uncertainties.

Driving Growth Through Strategic Mergers and Acquisitions

Ahmed Muzammil, Co-Founder of Gaper.io, elucidated the primary objective of the new fund. "The main aim of the fund is to facilitate mergers and acquisitions across the industry which will in turn accelerate growth and increase market visibility for companies involved," he stated.

Gaper.ioitself is an innovative AI-driven marketplace that effectively connects skilled software engineers with businesses seeking talent. Founded byMustafa NajoomandAhmed Muzammilat the onset of the COVID-19 pandemic in 2020, the company has since demonstrated consistent upward growth.

Broadening Impact: From Local Scaling to International Partnerships

The launch event, a testament to the fund's potential, was attended by esteemed delegations fromSaudi Arabiaand theGovernment of Punjab, alongside numerous CEOs and founders from leading IT and technology companies. Attendees universally applauded Gaper's proactive effort, expressing keen interest in how such a fund could invigorate IT companies within the prevailing economic climate.

Beyond assisting Pakistani IT service companies in their journey to scale and potentially go public, the fund is also poised to foster international collaborations. It will enable companies fromVietnam, thePhilippines, and theUSto partner with Pakistani counterparts, thereby enhancing their delivery capabilities and market reach.

Cultivating Investor Confidence and a Robust Market

Mustafa Najoom, Co-founder of Gaper.io, highlighted the fund's role in building trust and fostering a more positive investment environment. Drawing from his background in finance and brokerage, he noted, "Coming from a finance and brokerage background, I have come across numerous risk-averse investors looking for a secure place to invest in Pakistan. Empowering service companies that are cash flow positive by giving them a clear path to Pakistan Stock Exchange will not only build trust but also create a much more investment-positive industry."

Adding a historical perspective,Vic Ahmed, a celebrated serial entrepreneur and founder ofCresSoft—the largest tech company from Pakistan in the 1990s—underscored the critical importance of mergers and acquisitions for the nation's tech sector. "It’s imperative that we proactively create opportunities for mergers in order to maximize collective value extraction from the industry," Ahmed emphasized.

Strong Industry Endorsement

The inaugural fund session, hosted by Gaper.io, convened an impressive gathering of approximately80 CEOsfrom prominent tech companies spanning Pakistan, the US, and Saudi Arabia. Notable participants included:

These industry leaders collectively voiced their appreciation on behalf of the tech community, recognizing that such a fund would be instrumental in accelerating the IT service industry, opening avenues for more companies to list, and consequently boosting investor confidence and market visibility.

Further supporting the event were distinguished guests includingRizwan Saeed(Add. Foreign Secretary),Fazeel Asif Jah(Chairman, PBIT),Malik Mudassar(PASHA), andJunaid Querishi(President OPEN Silicon Valley).