In light of Pakistan’s ongoing economic crisis, the transportation startup Trella, which began operations in the country in October 2020, has decided to leave.
In 2021, the Egypt-based company raised $42 million from investors, including A.P. Moller-Maersk A/S’s venture arm.
According to two individuals with knowledge of the situation, Trella ceased accepting orders last month, citing the ongoing economic crisis in Pakistan as the reason for the “unsustainable” business. A portion of the company’s personnel will remain in Pakistan to support operations in Egypt, the United Arab Emirates (UAE), and Saudi Arabia.
Pakistan’s economic crisis has worsened over the past few months as the nation scrambles to secure external financing and an agreement with the International Monetary Fund (IMF) that is necessary to avoid the risk of default.
International institutions, such as the IMF, World Bank, and Asian Development Bank, have lowered their growth forecasts for Pakistan’s GDP for the current fiscal year to between 0.4% and 0.6%.
Several startups, including Airlift and Swvl, wound down or reduced operations over the past year. As a consequence of the dollar shortage, a number of companies in various industries have reduced production in recent months, citing decreased market demand and restrictions on imports and the opening of letters of credit.