Pakistan's Airlift Raises $85 Million for Expansion

Airlift Secures Significant Funding for E-commerce Infrastructure in Pakistan

A startup, barely a year old, focused on establishing robust e-commerce infrastructure within Pakistan, has successfully obtained a substantial funding round. This achievement represents a significant advancement for the developing startup landscape in South Asia.

Quick Commerce Operations

Airlift currently provides a rapid delivery service across eight Pakistani cities, including Karachi, Lahore, and Islamabad. Customers are able to order a wide variety of products – from groceries and fresh produce to essential medicines and sporting equipment – through the Airlift website or mobile application. Deliveries are completed within a 30-minute timeframe.

Series B Funding Details

The company announced on Wednesday the completion of its Series B financing, raising $85 million. This round values Airlift at $275 million, marking the largest funding injection to date for a Pakistani startup.

Harry Stebbings of 20VC and Josh Buckley of Buckley Ventures jointly led the financing effort.

Notable Investors

A diverse group of prominent investors participated in this funding round, bringing the startup’s total funding to $110 million. These include:

• Sam Altman, former president of Y Combinator
• Biz Stone, co-founder of Twitter and Medium
• Steve Pagliuca, co-chairman of Bain Capital
• Jeffrey Katzenberg, former chief executive of Disney and Quibi
• Taavet Hinrikus, founder and chief executive of TransferWise

Further investment came from Stanley Tang (DoorDash co-founder), Simon Borrero (Rappi founder and CEO), Bastian Lehmann (Postmates founder and CEO), Quiet Capital, and Indus Valley Capital.

From Transit to Quick Commerce

Initially, Airlift launched as a transportation service, offering a ride-sharing solution for air-conditioned buses in Pakistan. The service quickly gained popularity, facilitating over 35,000 rides daily. However, the onset of the pandemic significantly disrupted transportation throughout the country.

Recognizing the changing landscape, Usman Gul, founder and CEO of Airlift, made the strategic decision to pivot towards the quick commerce sector, as he explained in a recent interview with TechCrunch.

Global Ambitions

“The quick commerce sector is poised for widespread global change. Airlift is positioned at the leading edge of this transformation within Asia and Africa,” stated Gul. He also indicated plans for expansion into numerous international markets in the coming months.

Sam Altman commented, “Airlift’s initial success in Pakistan provides valuable insight into the future of quick commerce within developing nations.”

Operational Capacity and Efficiency

Currently, Airlift operates over 30 dedicated fulfillment centers and processes hundreds of thousands of orders on a monthly basis.

Gul emphasized the efficiency of this fulfillment center model. “Introducing additional intermediaries between products and customers inevitably compromises the overall customer experience,” he explained.

Within its first year of operation, Airlift has managed to reduce its customer acquisition cost to $5 and unit costs to $2.50.

Future Expansion Plans

The startup, currently employing over 100 individuals, intends to broaden its product offerings to include categories such as electronics. “The goal is to expand into new product areas and establish the logistical infrastructure for moving consumer goods from manufacturers to consumers,” Gul said.

Gul previously held a position at DoorDash before returning to Pakistan to launch Airlift. “My motivation was to create meaningful impact at the grassroots level and address challenges that would significantly improve the lives of millions – people for whom positive change is urgently needed. This was the driving force behind my decision,” he stated.

Harry Stebbings remarked, “From our initial meeting, it was clear that Usman is an entrepreneur destined to build a truly industry-defining company. His humility, ambition, and strategic thinking mark him as one of the great founders of his generation.”