One of Bangladesh’s top logistics firms, Paperfly, has suspended order acceptance, signaling challenges in the e-commerce sector. Paperfly faces a severe cash crunch due to delayed fund arrivals and unresolved fixed deposits with CVC Finance Limited. Despite engaging with Bangladesh Bank, financial constraints persist.
Paperfly expected funding in January but has scaled down operations, handling only pending orders. This situation threatens over 700 jobs. Before the pandemic, Paperfly made over 9,000 daily deliveries, dropping to 10% during the April 2020 lockdown. By early 2021, it rose to 15,000 daily deliveries. Despite significant investments, a downturn in e-commerce orders contributed to its difficulties.
Despite Paperfly’s initial success, the downturn in e-commerce orders following the pandemic contributed to its predicament. This situation serves as a cautionary tale for startups, emphasizing the importance of sustainable and profitable business models over relying solely on large investments.