Sydney-based e-grocery firm Voly will be shutting down “due to worsening macroeconomic conditions making it difficult to attract new funding”, its co-founder Thibault Henry announced in a LinkedIn post.
Several e-grocery firms across the globe have shut down recently after being unable to raise further funding. While in the US, e-grocery firms like Gopuff, Fridge No More, and Buyk have shut down operations, in Southeast Asia, East Ventures-backed Bananas has closed. Many e-commerce firms such as Meesho, Zomato, HappyFresh, Flipkart, and Dropezy have also shut down their e-grocery business this year.
The 18-month-old Voly had managed to raise $12.9 million in its seed round from Sequoia Capital India, Global Founders Capital, and Artesian Capital. It employs about 40 people and was set up by ex-Uber exec Mark Heath and Henry, who co-founded last-mile delivery firm Balto Logistics, as per information on its LinkedIn profile.
“Without enough runway to reach profitability, we had to make the difficult decision to stop operating,” said Henry.
“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,” he added.
Founded in 2020, Voly aimed at delivering groceries in under 15 minutes by using its own electric bikes, rider partners, and delivery centres. Voly claimed it had acquired 80,000 registered users in Sydney before it was forced to shut shop.