Trucking startup Trella will wind down its business in Pakistan, reported Bloomberg on Thursday, citing two people familiar with the matter.
The Egyptian giant ceased registering orders last month, added Bloomberg.
The company had raised $42 million in 2021 from multiple investors including the venture arm of A.P. Moller-Maersk A/S.
The report, citing the people, added that recent macroeconomic turmoil meant Trella’s business there was unsustainable.
The startup, which entered Pakistan in 2020, will retain some staff to assist its operations in Egypt, United Arab Emirates and Saudi Arabia.
Pakistan has been faced with a barrage of woes in recent months with a perceived default risk and downgrade by international ratings agencies reflecting the state of the economy that has also had to bear major political turmoil and frequent change in key leadership.
Last year, the country was also devastated by record monsoon rains and melting glaciers that submerged nearly a third of the country, displacing some 8 million people and resulting in at least 1,700 deaths in a catastrophe blamed on climate change.
The same has been felt by Pakistan’s startups that is also experiencing a funding crunch along with a squeeze in valuations of global technology companies. In the past year, Vitol-backed VavaCars has exited Pakistan, Dubai-based Swvl Holdings paused daily rides, Uber’s Careem suspended food delivery and Airlift, which raised a record $85 million, folded.
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