World News | Pakistan's Poster Child Startup Airlift Announces Complete Shutdown

Islamabad [Pakistan], July 13 (ANI): Airlift Technologies, which offers instant delivery service and is the poster child of Pakistan's startups announced that it is shutting down operations permanently.

"On July 12, Airlift's operations will shut down permanently. This has been an extremely taxing decision that impacts a large set of stakeholders and an emerging technology ecosystem," Airlift Technologies said in a statement posted on its LinkedIn page.

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Airlift Technologies was responsible for the country's largest single private funding in history, however, with its closure, questions are being raised on several startups and their viability, reported Business Recorder.

News of the company reducing headcount back in May implied it was struggling, but the decision to wrap things up permanently seems to have taken place only during the previous week, according to the company's statement.

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Back in May this year, Airlift Technologies, the startup that in August 2021 raised a record USD 85 million in a fundraising round, said it is slashing its global headcount by 31 per cent, and pulling out of several markets both in and outside of Pakistan as it realigns its strategy amidst a global recession.

According to market experts, several factors have played a role in Airlift's demise including the deteriorating state of the local economy, with record high inflation and petrol prices impacting not just the population's purchasing power and ability to spend extra on quick delivery but also the company's own costs and margins, reported Business Recorder.

The popularity of q-commerce, which soared during Covid, has also taken a hit since SOPs have eased and people are less worried about stepping out of their homes.

Meanwhile, Airlift said that it will ensure all of its employees are 'sufficiently protected' with two months of payroll, setting up the platform for job placement, and creating support systems for aspiring entrepreneurs, reported Business Recorder.

Last year was a record one for Pakistani startups. The sector saw 81 deals worth USD 350 million, according to Invest2Innovate.

Hammad Amjad, SME trainer and business consultant, told Business Recorder last month that startups in Pakistan often have funding and a growth-based business model akin to providing a subsidy to attract more consumers by either offering hefty discounts or taking on high marketing costs and "humungous" operational costs. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)