Voly collapses, its founders unable to raise further capital
Instant grocery delivery service app Voly has collapsed, ceasing operations abruptly.
A week ago, the Voly app stopped taking orders, warning customers that services were suspended until further notice.
In an email sent to customers, the duo explained they made the “tough decision to exit the market during this period of global economic uncertainty”.
Founded in 2020 by Thibault Henry and Mark Heath, the instant grocery delivery service rose to popularity during Covid lockdowns as online grocery shopping boomed.
Though the business raised $18 million in seed funding in December last year, it had closed four distribution centres in Sydney and made half of its staff redundant by June. It also removed its 15-minute grocery delivery guarantee.
Co-founder Thibault Henry also made an announcement on LinkedIn this morning stressing that “the sudden changes in the macro environment, unstable geopolitics and high inflation have made it extremely difficult to attract new capital despite the support of our current investors”. Fundraising has become “exceptionally difficult” for early-stage firms.
“Despite achieving profitability at a per-store level, we did not have the runway to achieve profitability at an all-of-company level,” said co-founder Mark Heath. “As such, we made the incredibly difficult decision to stop operating.”
On Wednesday, Deliveroo Australia announced that it has entered into voluntary administration after seven years of operation in the country.
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