Major Acquisitions Dominated Pakistan’s Tech Sector in 2022 - BizTalk

The year 2022 proved to be an exceptional period for Pakistan’s IT sector, characterized by a series of successful mergers and acquisitions. The industry achieved a remarkable economic contribution, with remittances reaching an all-time high of $2.616 billion. Revenues also experienced a substantial 24 percent increase, climbing from $2.108 billion recorded in 2021.

Further enhancing its global standing, Pakistan proudly hosted its 11th Bank of Future Forum, a leading banking technology conference. December 2022 also marked a historic first as the country welcomed the prestigious APICTA awards, bringing together delegates from 16 economies across the Asia Pacific region.

Upon reviewing the year, it is abundantly clear that Pakistan's technology sector is dynamic and holds immense potential for its IT industry. The considerable progress witnessed in recent years is highly encouraging, setting a positive trajectory for future ventures and anticipated advancements in 2023. A closer examination of these developments strongly highlights the robust capabilities inherent in the IT industry.

Systems Ltd. Acquires NdcTech

Systems Limited, recognized as Pakistan’s largest IT-listed company, completed the acquisition of NdcTech, a prominent IT and consulting firm. NdcTech is distinguished as a partner of Temenos and one of the fastest-growing entities in the banking technology sector.

NdcTech now operates as a fully owned subsidiary of Systems Limited, continuing under the leadership of its existing CEO, Ammara Masood. Both the parent company and its new subsidiary received significant global recognition in 2022. Systems Limited was honored with Forbes Asia’s "Best Under A Billion" award for the third consecutive year, while NdcTech secured the "best channel/platform implementation" award at the IBS Intelligence Global Fintech Innovation Awards 2022.

This strategic acquisition has significantly enhanced the synergy between both companies, allowing them to leverage each other's strengths to develop advanced capabilities for banks and financial institutions. Moreover, it has enabled NdcTech to expand its market footprint into new and previously untapped regions, including the Middle East, Africa, APAC, and Europe.

10Pearls Acquires Digital and Software Companies

10Pearls, one of Pakistan’s leading IT companies, expanded its portfolio by acquiring two distinct IT setups in 2022. These included Whiz, a Peru-based software development company focused on providing agile software development, innovation services, and technology talent to clients in North America, and Pixel506, a digital agency that originated in Brooklyn and is based in Costa Rica.

Pixel506 specializes in digital innovation, offering expertise in strategy, customer experience, user interface design, and software development. Through these acquisitions, 10Pearls has effectively strengthened its presence in the North American market by diversifying its service offerings.

US-based DigitalOcean Holdings Inc. Acquires Web Hosting Firm

DigitalOcean Holdings Inc., a prominent cloud services provider based in the US, acquired Cloudways, a Pakistani web-hosting firm, for $350 million. This transaction stands out as one of the largest acquisitions by value of a Pakistani startup by an American company. The acquisition is set to streamline digital development processes specifically for small and medium enterprises.

Swiss company buys Pakistani Fintech Operator

Swiss company ZoodPay, a digital lending platform for e-commerce operating across the Middle East and Central Asia, completed a 100 percent acquisition of Tez Financial Services (Tez), a Pakistani fintech operator.

According to industry experts, this acquisition strategically positions ZoodPay as a key new player in Pakistan’s digital lending and fintech industry. ZoodPay has successfully raised $50 million to date, with significant participation from leading global and strategic investors, including Zain, a prominent MENA-based telecom entity, and the London-based VC Fund Sturgeon Capital.

PostEx acquires Call Courier

Fintech operator PostEx acquired Call Courier, a logistics service provider, with the strategic goal of expanding its logistics offerings and establishing itself as the largest e-commerce service provider in the country. This deal forged a strong synergy, combining PostEx’s upfront payments, revenue-based financing, and technology with Call Courier’s extensive nationwide logistics infrastructure.

As a result, PostEx has significantly broadened its outreach, now serving 1.3 million users and over 8,000 merchants across 500 cities in Pakistan. Its monthly loan book has also experienced a substantial surge, now exceeding $12 million.

Conclusion

While Pakistan’s economy is currently navigating some of its toughest challenges, the IT industry emerges as a compelling beacon of hope. The numerous acquisitions of IT companies and fintech operators vividly reflect the robust business potential within Pakistan. This influx of substantial Foreign Direct Investment (FDI) not only enhances the intrinsic capabilities of these companies but also instills greater confidence among international economies to view Pakistan’s IT industry as a sound and promising investment opportunity.