Carfirst Ceases Operations In Pakistan.

The startup company CarFirst, which dealt in used cars, announced on Friday that it was ceasing operations in Pakistan.

The automobile marketplace thanked its stakeholders in a post on its LinkedIn page and stated that a team would stay in place to handle the “closure of the entity.”

CarFirst purchased used cars and resold them at a profit, assuring its customers a “safe, convenient, and hassle-free procedure.” It operated a smartphone app as well as a physical network of 35+ purchase-and-sale centers across Lahore, Karachi, Islamabad, Faisalabad, Multan, and Hyderabad.

Carfirst Ceases Operations In Pakistan. | E-Commerce

CarFirst raised $89 million in two rounds of fundraising, according to Crunchbase, a dealmaker prospecting site. Their most recent fundraising came on May 31, 2018, in the form of a Series A round.

Frontier Car Group, a German company that develops, produces and operates used-car marketplaces in emerging market economies, invested in the startup. Bayut-Dubizzle in the UAE, Zameen in Pakistan, OLX in both Pakistan and Egypt, Lamudi in Indonesia, the Philippines, and Mexico, Mubawab in North Africa, and Kaidee in Thailand are among its other initiatives.

A similar business, VavaCars, of Turkish origin, shut down its operations in Pakistan earlier this month. Its closure came on the heels of layoffs, service rollbacks, and outright closures by a slew of other major e-commerce businesses in recent months. VavaCars, which is backed by the Dutch energy giant Vitol, had secured up to $50 million in a Series B round in October 2021.

Pakistan’s startup sector is going through a rough time. Global investors who generously injected cash into startups with spectacular pitch decks are now demanding early break-evens rather than just top-line growth.

In light of the global recession and unfavorable economic conditions on the domestic front, prominent players such as Airlift, Careem, Swvl, and Truck It In have lately laid off employees and reduced the scope of their operations.

According to CarFirst’s LinkedIn page, the company has at least 366 employees with LinkedIn profiles. There was no information on employee compensation in the aftermath of the company’s abrupt shutdown. Raja Murad Khan, the company’s co-founder and CEO, did not respond to a request for comment on the reasons for CarFirst’s operational closure.