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.
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.