Trucking startup Trella has decided to exit Pakistan where the economy is experiencing one of its worst crises, reported Bloomberg.
According to Bloomberg, the Egypt-based company stopped accepting new orders last month. Trella, which raised $42 million in 2021 from investors including A.P. Moller-Maersk A/S’s venture arm, did not respond to a request for comment.
Trella’s business there was unsustainable due to recent macroeconomic turmoil. The startup, which entered Pakistan in 2020, will keep some employees to support its operations in Egypt, the United Arab Emirates, and Saudi Arabia.
Because of a delay in its loan program with the International Monetary Fund, Pakistan has received multiple downgrades from rating agencies. It has restricted imports due to a dollar shortage, seen its rupee lose a third of its value, and fuel prices nearly doubled in the last year alone.
All of these factors have had an impact on the trucking industry. Trella is one of the few prominent entities impacted by the situation and therefore has decided to exit the Pakistani ecosystem.
Meanwhile, Pakistan’s startup economy is facing a massive funding crunch, as are the valuations of global technology companies.
In the last year, Vitol-backed VavaCars left Pakistan, Dubai-based Swvl Holdings halted daily rides, Uber’s Careem halted food delivery, and Airlift, which raised a record $85 million, went bankrupt and closed shop for good.
