The Pakistani B2B e-commerce startup Dastgyr has made a significant decision to lay off 80% of its workforce. This move by Dastgyr is particularly noteworthy given the context of the startup ecosystem in Pakistan and recent funding trends.
In June 2022, Dastgyr successfully raised $37 million in a Series A funding round, which was a landmark for the Pakistani startup environment. This funding was primarily directed towards expansion and growth initiatives. However, the recent decision to drastically reduce the workforce indicates a shift in strategy or an adjustment to market realities.
This development is not isolated, as other technology companies in the region and globally have also been making similar moves. For instance, GitHub, a major code hosting platform, announced a 10% reduction in its workforce and transitioned to a fully remote operation model. South Asia’s leading e-commerce marketplace, Daraz, also reduced its workforce by 11%, citing tough market conditions. Retailo Technologies, a startup aiming to simplify retail through technology, laid off several employees from its engineering department.
These layoffs across different companies signal a broader trend in the tech industry, where companies are reevaluating their strategies and workforce requirements in response to changing market conditions and economic challenges. For Dastgyr, this move might be a strategic realignment to focus on core areas of the business, ensuring sustainability and efficiency in a challenging economic environment.
The situation underscores the dynamic and often unpredictable nature of the startup ecosystem, where rapid growth and expansion can be followed by swift strategic adjustments in response to market forces and economic pressures.