How a startup folded just a year after raising US$85mil

Airlift joins a slew of startups in Pakistan and neighbouring India that have hit a wall as venture capitalists curb investing in the region in favour of countries and industries they consider less risky. — Unsplash

In early July, things looked rosy at Airlift Technologies Pvt as it prepared to raise more cash for expansion. Six days later, the startup – one of Pakistan’s most prominent – was bust.

The ecommerce company collapsed less than a week after failing to complete a funding round, underscoring how severely the global rout in tech valuations is affecting fragile startups in emerging markets. Airlift had raised US$85mil (RM382.75mil) a year earlier – a record for the country – and had curbed spending in a bid to appeal to investors as it worked toward a fresh round. But then the lead backer pulled its commitment, leaving Airlift with no capital to continue and forcing it to abruptly shut down.