Several Pakistani startups are currently grappling with severe challenges, with some on the brink of shutting down or making significant staff cuts due to financial difficulties. One prominent example is Cheetay, a delivery service startup reportedly facing the prospect of permanent closure.
Another affected startup is Dastgyr, an eCommerce marketplace specializing in business-to-business transactions. Dastgyr has already initiated workforce reductions in response to its financial struggles. Similarly, YAP, an electronic money institution (EMI) in the fintech sector, has been forced to lay off a substantial number of employees in Pakistan. Furthermore, YAP is facing uncertainties related to its in-principle approval for an EMI license.
Paymob, another financial technology company, is undertaking a significant rightsizing effort to maintain sustainability amid funding constraints. These challenges collectively highlight the demanding business environment that Pakistani startups are currently facing.
The struggles of these startups underscore broader issues and uncertainties within the country’s startup ecosystem. They emphasize the need to address financial constraints and create a supportive environment for the growth and sustainability of startups, ultimately contributing to Pakistan’s overall economic Health.
