'Foodpanda is shifting away from grow-at-all-costs model'.

KARACHI -- Foodpanda Pakistan is shifting away from its grow-at-all-costs business model amid a worldwide slowdown in venture-capitalist (VC) funding for ecommerce startups.

Speaking to Dawn in a recent interview, Foodpanda Pakistan CEO Muntaqa Peracha said the company with a dominant market share in the last-mile delivery segment is now actively seeking the 'high-quality consumer' who isn't 'focused on arbitrage'.

'We didn't historically differentiate between low- and high-ticket consumers. We began making that differentiation last year. We're looking for sustainable growth now,' said Mr Peracha.

Like the rest of the world, Pakistan's startup ecosystem has been in financial turmoil of late. Major players, including Careem and Swvl, have laid off employees, rolled back services and even suspended operations in recent weeks citing the global recession.

The VC-backed spending spree aimed at acquiring new customers at all costs seems to have ended at once. VCs who gladly wrote blank cheques for startups until recently in the name of customer acquisition are now looking for early breakevens. Revenue growth doesn't cut it anymore as investors demand positive bottom lines or at least a sure-shot path to profitability.

Mr Peracha said Berlin-based Delivery Hero, which is the holding company of Foodpanda Pakistan, foresaw the upcoming tumults in the global startup ecosystem a year in advance. 'We saw this coming... and took some measures.'

As the subsidiary of a publicly traded company, Foodpanda Pakistan must respond to changing market dynamics a lot quicker than VC-backed, cash-burning startups operating outside of the glare of public scrutiny, he said. 'We're now seeking the value-based consumer who wants convenience, genuine products and a trustful payment mechanism,' he added.

To help consumers make 'smarter choices' - which means a higher ticket size in plain English - the company has recently added several new verticals like home chefs, Pandamart and grocery shops, he said.

The holding company hasn't turned in a profit yet, although its top line grew almost 137 per cent in 2021. The financial statements of Delivery Hero don't show country-wise performance breakdown.

The Pakistani subsidiary is also in the 'customer acquisition' phase, according to its CEO. 'We're going to hit breakeven next year,' he said.

'We're in the top three to four...