Another Pakistani Startup, Jugnu, is Shutting Down its Core Operations

Jugnu, a B2B e-commerce supply chain startup in Pakistan, is shutting down its core business operations. However, the company will pivot towards a tech-platform play, utilizing its technology and data suite to enable commerce and financial inclusion. This decision comes as Jugnu aims to become more capital efficient and work towards profitability in light of new global macroeconomic realities.

The shift in business model will have a significant impact on some of Jugnu’s teams. The company is reaching out to organizations to assist in transitioning its talented employees to new roles.

Another Pakistani Startup, Jugnu, is Shutting Down its Core Operations

A former Business Development Executive at Jugnu revealed that an investor pulling out was a primary reason for the shutdown.

The former Unilever Executives Sharoon Saleem and Yasir Suleman Memon started this startup in 2019, Jugnu aimed to empower small and medium-sized retailers by digitizing their operations and providing inventory and capital flow control.

The startup had raised a total of $25.7 million over three funding rounds. Its latest Series A round in March 2022 secured $22.5 million from investors such as Sary, Sarmayacar, and Systems Limited.

Some internal sources revealed that internal stealing and mismanagement were significant challenges for Jugnu. The company experienced losses in inventory management. However, the senior management was allegedly involved in corruption and unethical practices.

Logistics and route planning were also mismanaged. Despite raising significant funding, Jugnu reportedly faced payment delays to its logistics partners. Former employees mentioned a toxic work environment and unprofessional behaviour from senior management as contributing factors to the company’s downfall.

However, they acknowledged the founders’ efforts and the potential of the project. Not only Jugnu, Airlift and MedznMore have also shut down their operations in the country. These cases highlight the importance of operational management and reducing dependence on external investment to achieve long-term success in the startup ecosystem.

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