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Course
ME-201 (Entrepreneurship)
Semester
4TH (Spring 2025)
“DEPARTMENT OF MECHANICAL ENGINEERING”

 Startups are young companies founded to develop a unique product or service

and bring it to market, usually under conditions of high uncertainty and innovation.
They often aim to disrupt existing industries or create entirely new markets.
 A startup is a temporary organization in search of a scalable, repeatable, and
profitable business model. Unlike small businesses, startups aim to grow rapidly
and often operate in uncertain, innovation-driven markets.
 A startup is a new company started by one or more people to create a unique
product or service, usually using innovation or technology, with the goal of
growing quickly and solving a real-world problem.
Examples:
• Careem was a startup that made booking a ride easy through a mobile app.
• SadaPay is a Pakistani startup offering digital banking with no hidden fees.

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Innovation: Focused on solving a real-world problem with a new or better solution.

Scalability: Designed to grow rapidly and reach a large market.
Risk & Uncertainty: High risk, often with untested business models.
Funding Needs: Often start with personal funds, then seek angel investors, venture
capital, or crowdfunding.
Technology-driven: Many are based on new tech or digital platforms, though not
all.

 MVP: Minimum Viable Product (Basic version of product/ service)

 Equity: Ownerships or shares held in a company
 Angel Investor: Wealthy Individual who invests early in return of equity
 Venture Capital: Investment firm that funds high potential or invests into promising
early stage startups. They charge management fee for managing firm capital or
interest on fund’s return on investment “carry”. They can also work for exchange of
equity.
 Crowd Funding: Funding from agroupof people typically via internet. In return
crowd may get a product, reward, equity or satisfaction (Donation).
 SaaS Platform: Software as a service, typically a clud based where provider hosts
and manages applications and users access it typically on subscription basis (Drop
Box, Gmail)

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 Seeds Fund: Initial funds received before launching a product or service to validate
business idea and make MVP
 Hedge Fund: From wealthy individuals managed by managers to produce high
return irrespective of market conditions, not for general public. Riskier and
Profitable
 Customer Acquisition Cost (CAC): Amount spent by company to get a customer.
 Customer Lifetime Value (CLV): Profit a customer brings to your business over
their entire with you.
 Types of Business Models: Retail, Subscription, Freemium, Franchise, Market Place.

1.Tech Startups: Apps, SaaS platforms, AI tools (e.g., Careem, Bykea)

2.Social Startups: Focus on social impact (e.g., doctHERs)
3.Green Startups: Environmentally focused (e.g., solar pump manufacturing)
4.E-commerce Startups: Online retail (e.g., Daraz.pk in early stages)

Type Example
Tech Startup Careem (ride-hailing, now acquired by Uber)
Social Enterprise doctHERs (female doctor telehealth)
Green Startup PakVitae (clean water)
Fintech-E SadaPay, NayaPay
AgriTech-E Ricult (agriculture analytics)
EdTech-E Edkasa, Maqsad
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Examples of Pakistani Startups

Startup Sector Description

Mass transit and quick
Airlift Logistics
commerce (closed in 2022)
Ride-hailing and delivery via
Bykea Mobility
motorcycles
Wholesale marketplace for
Bazaar B2B Commerce
retailers
SadaPay Fintech Digital banking and payments
Affordable water filtration
PakVitae Water Tech
solutions

Stage Activities
Identify problem, brainstorm solution, initial
Idea Stage
team setup
Build MVP, gather user feedback, market
Validation Stage
research
Launch product/service, acquire early
Startup Stage
users/customers
Scale operations, enter new markets, hire
Growth Stage
talent, optimize systems
Expand product line, explore international
Expansion/Maturity
markets, sustainable revenue
Merge, acquisition, or IPO (Initial Public
Exit Stage
Offering)

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Stage Purpose Who Invests What the Startup Has

Build the idea, prototype, Founders, friends, family, Just an idea or early
1. Pre-Seed
or concept incubators prototype
MVP (Minimum Viable
Launch product, market Angel investors, seed
2. Seed Product), early user
testing, build small team funds
feedback
Scale product, improve
Strong product-market fit,
3. Series A business model, expand Venture capital firms
growing user base
team
Grow customer base, enter
Proven business model,
4. Series B new markets, optimize Larger VC firms
consistent revenue
business
Expand globally, acquire Profitable or near-
VC firms, private equity,
5. Series C (and beyond) other companies, prepare profitable, high market
hedge funds
for IPO demand
Raise capital from public Large company, full
6. IPO (Initial Public
investors and list on stock Public shareholders transparency, public
Offering)
exchange financials 9

 Founders/Co-founders
• Mentors & Advisors
• Incubators & Accelerators (e.g., NIC, Plan9 Pakistan)
• Investors (Angels, VCs, crowdfunding)
• Support Services (Legal, HR, accounting)
• Tech & Co-working Spaces (e.g., COLABS, The Nest I/O)
• Government & Policy Support (e.g., Ignite, Kamyab Jawan Program)

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• Drive innovation
• Create jobs
• Boost economic growth
• Solve local and global problems in new ways

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• Product-market fit
• Funding shortage
• Competition
• Hiring the right team
• Regulatory hurdles
• Customer acquisition cost
• Founder burnout

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Metric Purpose
Monthly Recurring Revenue (MRR) Tracks steady revenue
Customer Acquisition Cost (CAC) Measures marketing effectiveness
Customer Lifetime Value (LTV) Estimates total revenue per customer
Burn Rate Monthly cash spend vs income
Churn Rate Rate of customer loss

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Overview
• Founded: March 2019
• Founders: Usman Gul, Ahmed Ayub, Meher Farrukh
• Headquarters: Lahore, Pakistan
• Industry: Transportation and Quick Commerce (Q-Commerce)
• Status: Ceased operations on July 13, 2022

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1. Airlift Transit (2019)

• Concept: App-based mass transit service allowing users to book rides on fixed
routes with predetermined stops and timings.
• Objective: Address urban transportation challenges by offering a reliable and
efficient commuting option.
• Operations: Launched in Lahore and expanded to Karachi, achieving 50,000 rides
within five months.
2. Airlift Express (2020)
• Pivot: In response to the COVID-19 pandemic and resulting lockdowns, Airlift
transitioned to a quick commerce model, delivering groceries and essentials
within 30 minutes.
• Expansion: Operated in eight Pakistani cities and expanded internationally to
three South African cities: Cape Town, Johannesburg, and Pretoria.

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• Seed Funding: $2.2 million in August 2019.

• Series A: $12 million in November 2019, led by First Round Capital.
• Series B: $85 million in August 2021, co-led by Buckley Ventures and 20VC,
marking the largest funding round for a Pakistani startup at the time.
• Total Funding: Approximately $110 million, with a peak valuation of $275 million.

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 Despite its rapid growth and substantial funding, Airlift faced several challenges:
• High Burn Rate: Aggressive expansion led to significant cash outflows, with
reports indicating the company spent its $85 million Series B funding within 11
months.
• Operational Complexities: Managing logistics for quick commerce proved
challenging, especially in maintaining timely deliveries and inventory
management.
• Market Dynamics: The economic downturn and tightening venture capital
markets in 2022 hindered Airlift's ability to secure additional funding.
• Strategic Missteps: Rapid international expansion without solidifying domestic
operations may have overextended the company's resources.

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 On July 12, 2022, Airlift announced its decision to cease operations, attributing the
shutdown to the inability to secure new funding amidst challenging economic
conditions.

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• Sustainable Growth: Startups should balance rapid expansion with sustainable

operational practices to ensure longevity.
• Market Fit: Understanding and adapting to local market dynamics is crucial,
especially when entering new sectors or regions.
• Financial Prudence: Maintaining a healthy burn rate and having contingency
plans for funding can safeguard against unforeseen economic downturns.
• Strategic Focus: Prioritizing core markets and operations before international
expansion can help in building a solid foundation.

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 Airlift Technologies' journey offers valuable insights into the challenges of scaling
a startup in emerging markets. While its innovative approach and rapid growth
were commendable, the company's experience underscores the importance of
sustainable practices, market understanding, and strategic planning in the startup
ecosystem

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ANY QUESTIONS?

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