Egypt-based Trucking startup Trella is dwindling its business in the neighboring nation, Pakistan- which is going through one of the biggest economic crises.
Trella since last month stopped taking new orders in the nation. In 2021, the startup raised $42 million from investors including the venture arm of A.P. Moller-Maersk A/S.
Trella entered Pakistan in 2020, and now looking at the recent macroeconomic turmoil making its business unsustainable Trella is moving out of Pakistan, retaining a handful of its staff to assist its operations in Egypt, United Arab Emirates, and Saudi Arabia.
Due to a delay in its loan program with the International Monetary Fund, Pakistan has incurred multiple downgrades by rating agencies. Moreover, it has restricted imports because of a dollar shortage, seen a drop in its currency by a third of its value, and almost doubled fuel prices in the past year. All of this is impacting the trucking business.
Also read: DHL announces partial suspension of some operations in Pakistan
The startup economy of the neighboring nation is also experiencing a funding crunch along with a squeeze in the valuations of global technology companies.
Pakistan in the past year has seen the exit of Vitol-backed VavaCars, Dubai-based Swvl Holdings pause daily rides, Uber’s Careem suspended food delivery and Airlift, which raised a record $85 million, folded.