On Feb 7, CEO Bjarke Mikkelsen revealed in a statement that the company is reducing 11% of its personnel throughout the Daraz Group. He added that Pakistani entrepreneurs and the entire information technology sector are now being affected by the global trend of layoffs.
In a conversation with a news publication, Topline Securities ICT analyst Nasheed Malik stated that ‘funding fell in the last quarter of 2022.’
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According to him, for the first 10 years of its existence, Daraz neglected revenues in favour of client acquisition. However, because of Pakistan’s present economic crisis, the company was forced to fire employees from its upcoming projects that had nothing to do with its main source of revenue.
Malik says startups in Pakistan are now focusing just on their core businesses in order to sustain revenues and cash flow.
The Alibaba Group subsidiary ‘Daraz’ a well-known e-commerce site, has operations in Pakistan, Bangladesh, Sri Lanka, and Nepal. The company, which was founded in 2012 and was acquired by Alibaba in 2018, has 100,000 SMEs in Pakistan on its platform and employs 10,000 people to serve 500 million clients.
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