ZERO deals and two startups close shop
Note # 042
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It was an awful month to be a founder in Pakistan.
ZERO funding deals and two startups announced they were shutting down within 48 hours of each other.
One completely, the other partially.
First, the online pharmacy startup MedznMore called it quits. And then Jugnu, a B2B retail marketplace that branched off from Salesflo, said it would stick around, even after shutting down most of its operations.
MedznMore is the first high-profile startup to fail after Airlift, followed by Jugnu. Combined, this trio raised $150 million in two years.
That’s a lot of money. And bystanders are outraged.
In Pakistan, taking cheap shots at recently failed startups on social media has become customary.
To pass judgments on the founder's intentions. To analyze the startup’s financials without having access to financials. And allege fraud without any evidence based on feels.
No doubt, pessimism sounds smart. But I think people are genuinely hurt but can’t seem to communicate it properly and throw blame at what they believe is why a startup fails:
Accountant, oh, they didn’t track their money. Finance bro, oh, their projections were exaggerated. Product guy, oh, they never had PMF. Marketing guru, oh, they shouldn’t have hired Wasim Akram.
As they say, everything looks like a nail to a guy with a hammer.
Both startups claimed they faced challenges raising money due to the current economic climate. And couldn’t continue operations in good faith.
Fair, but I don’t think Abdullah cares. He knows everything unknown. But doesn’t know 90% of startups fail.
Let’s do the numbers. Oh, wait, never mind.
🗳️ Poll
I am thinking about sending this newsletter weekly, instead of monthly. The email format will change a little as I will summarize one main story of the week and share my thoughts. And the newsletter beginning of every month will recap funding of the previous month as usual without many links to the articles and digital media.
📰 Learn
Farmdar launches AgromAI Brazil. Challenges facing IT growth in Pakistan. Foreign investors will be allowed to repatriate profits, among other things. Crackdown on scammy digital loan apps, finally. IT exports stagnate at $2.6 billion in FY23. Abhi and BlueEx launch COD financing. Maybe, a conflict of interest at Endeavor Pakistan. SBP selects Haball for the supply chain finance tech platform. The lasting impact of internet shutdowns on women in the gig economy. VCAP statement on potential data protection bill. PSX prepares for tech powerhouse IPO.
🧠 Think
When tourist investors leave. The web of cyber scammers. Is the irrational exuberance over? Zeenat Chaudhary profiles Badar Khushnood, co-Founder of Bramerz and Fishry.com. Few policy ideas to expand the IT sector. What kind of startup ecosystem should Pakistan build? Time for bold to invest in Pakistan. The polarizing debate around startup closures.
🎙️ Listen
Conversation with Ahsan Ali Khan, co-founder of Zaraye, Muhammad Mustafa, co-founder of EasyFresh, and Kalsoom Lakhani, GP at i2i Ventures, on The Startup Studios Show.
📺 Watch
Conversation with Ahsan Ali Khan, co-founder of Zaraye, Muhammad Mustafa, co-founder of EasyFresh, Meenah Tariq, co-founder of Metric, in conversation with Humna Raza, Faisal Aftab, GP Zayn Capital, in conversation with Kanwal Masroor and Mutaher Khan, co-founder Data Darbar, in conversation with Uzair Younus.
Until next month, ✌️
Always admire your work - especially love the think, learn, listen and watch sections - greatly summarizes conversations with quick links.