VavaCars, sponsored by Dutch energy and commodity trading corporation Vitol, claimed it had ceased operations in Pakistan just over eight months after it disclosed obtaining $50 million. The online trading platform had previously stated that it will utilize the money raised to expand its operations in Pakistan and Turkey. The development on Thursday follows that statement.
An announcement on the business’ website stated that “Vava Cars is no longer operational in Pakistan.”
The business began operating in Turkey in 2019, and from Karachi, it entered the Pakistani market in January 2020. Despite having its headquarters in the UK, the business doesn’t do business there.
The company disclosed the participation of Vitol, a founder investor, Duquesne Family Office LLC (established by Stanley F. Druckenmiller), and one additional new investor in its fund-raising announcement in October 2021.
Then, it said, “In the future, VavaCars intends to expand into new markets leveraging the fuel station networks of its founding investor, Vitol,”
The closure occurs in the midst of a developing trend in Pakistan where several businesses are struggling financially and have announced workforce reductions or the closure of entire verticals.
As it realigns its approach amid a worldwide recession, Airlift Technologies, the startup that in August 2021 raised a staggering $85 million in a fundraising round, recently reduced its global headcount by 31% and withdrew from a number of markets both inside and outside of Pakistan.