Muni says goodbye: without a new round, the Colombian startup closes its doors

Born 2 years ago, Muni closed its operations last week even after raising about $27 million.

The shifting winds in the venture capital market have claimed yet another casualty. Seven months after announcing a $20 million Serious A round, Colombian social commerce startup Muni has gone out of business. The reason: He didn’t get a new round of investment.

“THE Muni It is a company that requires investment in the short term to be sustainable. Tech companies typically take at least five years to become profitable. And all that time, they depend on outside capital to function. THE Muni was in the same situation, and although we have worked very hard and have an incredibly talented team, current circumstances have prevented us from raising the necessary capital to continue our growth,” the company said in a statement posted on its website. .

The message was published last week and informs that the company would close its operations in Colombia, Brazil and Mexico on November 23, with an expectation to fulfill requests in support channels until the 25th.

wanted by startupsa Muni it said in a statement that it will honor all of its commitments to partners and suppliers and that it is giving full support to its employees, as well as the “Muni Leaders,” who have been the core of its business model.

These consultants worked on a model very similar to that of Nature or from Avon🇧🇷 They took orders through a virtual catalog on Whatsapp and forwarded to Muni🇧🇷 The company then carried out all the delivery logistics within a maximum period of 24 hours. The target audience of the company was the C and D classes.

On his LinkedIn profile, the company appears with a peak of 634 employees in September, a number that began to fall in October.

rap mafia

Muni was born two years ago and was founded by Maria Echeverri Gomez, a representative of Rappi Mafia, the group of former employees of the delivery app who have created their own startups. In Serie A in April inclusive, he led two of the founders of the captable you rap: Simón Borrero and Felipe Villamarin. In addition to them, other star names participated: Fabián Gome, founder of Frubana🇧🇷 Florian Hagenbuch, from mezzanine🇧🇷 and Hans Tung, from GGV capital🇧🇷 The fundraiser was led by the American fund Lightspeed Venture Partner and had the participation of the Brazilian monashees and also American pear VC🇧🇷 In all, the company raised approximately $27 million.

Rappi Mafia startups are known for adopting part of the high-investment playbook to accelerate app growth. The model made sense in recent years with excess liquidity available in the market, but with risk aversion due to the uncertainties of the global economy, the pursuit of growth with cash burn has been replaced by operating performance metrics.

With this reset, many companies have already had to retool their operations. The Brazilian easily, which also operates in the social commerce segment, was one of them. The expectation is that further adjustments will take place in the coming months as there is no expectation of an improvement in the financing scenario.

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Source: Terra

Camila

Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.