This recession is a big one and it’s just getting started.
Airlift will reportedly close nationwide operations starting from July 13th as the startup is failing to generate profits for investors and hit revenue targets. Reportedly all operations are going shut down from tomorrow in order to preserve investor money and as a means to exit the market altogether.
What does this mean?
It means one of Pakistan’s “hypergrowth” startups is exiting the market and shutting down which is a huge blow to our startup ecosystem and for the job market as well. They had already laid off 30% of employees and had conducted a hiring freeze but apparently, this would not suffice.
In regards to background, Airlift’s founding team included: Usman Gul, Meher Farrukh, Zohaib Ali, Awaab Khakwany, Muhammad Owais and Ahmed Ayub. In August 2021, the company announced raising a record high revenue of $85 million in Series-B funding, and a valuation of a little over a quarter of a billion dollars ($275 million).
Airlift also did a strategy shift in the past. 1st July 2020, Usman Gul, co-founder and CEO of Airlift announced Airlift closing $10m in Series A-1 Financing. At the same time, Airlift announced the launch of Airlift Grocers under the umbrella of Airlift Technologies. The founders are experienced to change management but apparently the recession was too much for them.
Where to next?
We hope that Airlift will provide a good severance package to the laid-off employees and they will be able to adjust soon in the market. WTS will be looking out to create a directory as needed for the alumni of Airlift, assuming this news is true.
