Airlift is one of Pakistan’s top-performing startups. It has proven to be one of the most resilient and agile emerging market startups. In recent years, the company worked very hard in order to make a good position in the market. It navigated the Covid crisis pivoting into q-commerce and building scale in a new domain. However, the sad piece of news is that Airlift has announced to shut down its operations in Pakistan following the funding crunch.
Airlift Will Shut Down Operations On July 12
According to recent reports, the top-performing startup in Pakistan will permanently say goodbye on July 12. We all know that economic activity has been affected due to the global recession and the recent shutdown in the capital markets of Pakistan. It had a devastating impact on many startups in Pakistan. Airlift is one of them. The funding crunch has rendered its shutdown inevitable which will certainly impact a large set of stakeholders and the emerging tech ecosystem.
The company revealed that Airlift is one of the first few startups in Pakistan to restructure business operations. Its response code included three adaptations that have been jotted down below:
- an immediate reduction in headcount
- shutting down operations across all expansion markets
- revision in platform configurations to ramp up monetization
The startup achieved order-level profitability these adaptations to maintain reasonable scale ad reduce financial burn with by 66%. The company was almost three months away from positive cash flow and about 6-9 months away from free cash flow in July 2022. So, the global recession and the recent downturn in capital markets are the main reasons behind its closure.
The company stated that:
Airlift could not risk leaving its employees unpaid or reneging from its commitments.”
The company is all set to proactively manage the arrears and liabilities as a part of its ongoing shutdown process. It will be ensured that all employees are sufficiently protected and catered for. In addition to that, the company has also announced a severance package for its employees, providing them with two months’ pay and setting up a platform for job placement.
Airlift’s success was seen as a milestone for the burgeoning tech ecosystem in emerging markets. Alas! Now its journey is coming to an end. The company hopes that its mission of creating positive change will surely find a new life. Furthermore, the closure is expected not to affect the overall technology ecosystem in the country. All we need is to continue to thrive as a nation as some of the most valuable technology companies in emerging markets are still yet to be started. Let’s just hope for the best for our country.
Also Read: Digital Banking Startup YAP Raises $41 Million