Following a failed crowdfunding, Pakistan-based rapid commerce company Airlift has halted operations. The startup announced it in a post on LinkedIn.
Due to “rapidly deteriorating conditions in the global economy,” investors were unable to commit to making payments during the campaign, which was scheduled to be Airlift’s series C1 round. As a result, the startup with its headquarters in Lahore was unable to obtain the necessary cash.
In reaction to the economic slump, Airlift recently reorganized its operations, cutting staff, ceasing operations outside of critical regions, and raising rates and delivery costs. This led to the closure.
According to Airlift, the restructuring allowed it to turn a profit at the order level of $0.28 per order in June as opposed to a loss of $0.64 per order in the preceding six months.
According to the company, operating profitability and company-level profitabilities were both roughly three months and six to nine months away, respectively, as of July.
Airlift was established in 2019 and has already raised close to US $110 million. The business announced that it will pay employees’ wages for July and August as part of the shutdown. Additionally, it will provide a platform for job placement and a support system for workers who want to launch new businesses.
