One of the leading logistics firms in the post-pandemic era, Paperfly, is on the brink of closure, having suspended new order acceptance recently. This situation serves as a stark reminder of the current challenges confronting Bangladesh’s e-commerce sector.

In a statement provided to the media, the company stated, “The company has ceased taking new orders since last week. The management will take further steps after consulting with the board.”

Paperfly is facing a severe cash crunch due to delayed fund arrivals and difficulties in obtaining fixed deposits from CVC Finance Limited.

Md. Mamunur Rashid Molla, the Managing Director and CEO of CVC Finance Limited, acknowledged that Paperfly had funds with their institution. Following Paperfly’s contact with Bangladesh Bank regarding the encashment issue, CVC Finance Limited has been making regular installment payments to the company, with a substantial portion of the funds transferred.

According to a high-ranking Paperfly official, there is a strong likelihood that the company may need to cease operations entirely, posing a significant concern for its 700-plus employees who would potentially lose their jobs.

The official stated, “We have not informed them of anything, and the office is operating as usual. We will decide our course of action after the board meeting,” while requesting anonymity.

Paperfly was anticipating funding in January from Ecom Express, a prominent tech-based e-commerce logistics solutions provider in India, which owns a majority stake of over 80 percent in the company. However, this expected funding did not materialize, and as a result, the company gradually scaled down its operations.

Presently, it is only fulfilling pending orders.

Founded in February 2016 by Shahriar Hasan, Razibul Islam, Rahath Ahmed, and Shamsuddin Ahmed, Paperfly had expanded its reach to nearly every union in Bangladesh by early 2021. During the pandemic, the company experienced a substantial surge in delivery requests.