Saturday, August 13, 2022

Airlift suspends operations in Pakistan due to funding issues

Pakistan’s biggest q-commerce site, Airlift suspends operations in Pakistan due to funding issues. According to a source, Airlift told its employees last night that the company will close on Wednesday.

A source told ProPakistani that the company was still trying to raise money as late as last week. But “several,” investors said it would take at least two months.

A source said that information about layoffs and who is to blame makes its presence known to the general populace in the next 30 days. This means that the airlift suspends operations in Pakistan. Last week, the people in charge found out what had happened.

Hours after the news came out, Airlift put out a statement saying that it was no longer in business. This decision will affect a lot of different people as well as a growing technological ecosystem.

Responses to the world financial crisis

The airlift was one of the first companies in emerging markets and a leader in reorganizing companies. Staff cuts, closing all new markets, and platform adjustments to make more money.

The airlift was able to make money on each order, keep its size, and cut its financial burn by 66 percent. When Airlift reached operating profitability in July 2022, it was still three months away from corporate profitability, which was still six to nine months away (i.e. Free Cash Flow).

Financing

A news release says that one of Airlift’s investors led the Series C1 funding for the company in May. Because of the prospective lead, we were able to get more investors for the round. Investors like Indus Valley Capital, Buckley Ventures, and 20VC gave First Round Capital a lot of money.

Airlift sent out papers for all investors to sign at the beginning of July so that the round of financing would go well. Last week, a number of people said that the Company’s capital needs would not be met because wire times and payments are hard to predict. The team lost the game.

Airlift says that it would be irresponsible of them to not pay their employees or do anything else that they agreed to in their contracts. The Board opted not to let employees go without pay to becoming requested numerous times. Before Pakistan’s Eid holiday on July 7, our management team and investors realized that the above was true.

Severance/Liabilities

Airlift will also provide two months of pay for July and August, a job-placement platform, and support systems for aspiring entrepreneurs on our team who may want to start new businesses as part of our goals.

While we are closed, our team will take care of the debts and obligations we owe to other people. Airlift will stop working in Faisalabad, Gujranwala, Sialkot, Peshawar, Hyderabad, Johannesburg, Cape Town, and Pretoria in May 2022.

Part of the Airlift’s service to Pakistan was flying to Lahore, Karachi, and Islamabad. In August, the company got the largest Series B investment in the country, which was $85 million.

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