Colabs, a startup based in Lahore, is going to roll out a software as a service to help businesses meet their back-office needs. Increasing the product team for its workspace service that is emerging from the alpha phase will be one of the things it plans to hire more staff for.
The new plans come after the startup secured $3 million in seed funding, the first time that the three Pakistan-focused VCs are investing in a startup together.
People setting up operations in Pakistan need other services, they need help to set up companies, process payrolls and to ensure tax compliance, according to Colabs co-founder and CEO. We introduced our business solutions because of that.
Shah said that they will roll out the product to the market in the next 12 months.
Colabs was founded by Mr Shah and his twin brother Ali Shah to help entrepreneurs start businesses in Pakistan. They were inspired by the tech space in the country.
Prior to launching Colabs, Mr Shah worked in the private equity sector for about eight years, with his last assignment at Abraaj Capital, before he collaborated with his brother, who operates long established family-run real estate and development firm SABCON, to launch the startup. The firm is owned by a family.
National expansion is planned.
The startup has over 100 companies in its three locations in Lahore. Over the next five years, it plans to open 100,000 seats across the country, including in major cities such as Islamabad and Karachi.
Colabs wants to be the gateway to Pakistan for tech companies. The image is from Colabs.
The idea for Colabs is to create spaces across the country, where we can service small and large businesses. It is a community for people who want to start a company or enter the country. They will be supported by Colabs. Shah said they want to become the gateway into Pakistan.
Our growth plan is ambitious. When we open our new spaces, they are already sold-out. There are many companies entering the country. He said that many startup that are raising capital and want to be inside spaces like ours, as opposed to investing in their own campus.
Post- Covid, more companies are reducing the overheads associated with operating exclusive physical locations. These co-working spaces host events that are important for networking, learning or meeting potential investors or clients.
According to Shah, the rising interest in Pakistan by major investors like Tiger Global means that the growth of the country's startup ecosystem is set to continue, increasing the demand for spaces like Colabs. The number of investments into Pakistan rose to $350 million last year from $65 million in the previous year.
New funding brings the total amount raised by the startup to $4 million, including capital from a pre-seed round.
Aatif Awan, founder and managing partner of Indus Valley Capital is excited to partner with the Colabs team to build the leading platform and community that will power the growth of Pakistani tech.
Turner Novak, William Hockey, and Teddy Himler were some of the key angels in the seed round.
I have watched Colabs grow into one of the key players in Pakistan's startup scene. We met some of the startups we invested in.
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