Grabango, a grocery-tech startup that raised over $93 million for its cashierless checkout technology, is shutting down, The Spoon has learned. The closure follows the company’s inability to secure the necessary funding to continue operations.
In a statement to The Spoon, Grabango said:
“Grabango announced today it has permanently discontinued operations. Although the company established itself as a leader in checkout-free technology, it was not able to secure the funding it needed to continue providing service to its clients. The company would like to thank its employees, investors, and clients for their hard work and dedication. The decision was an extremely difficult one to make.”
Founded in 2016, Grabango emerged during a surge of investment in grocery checkout technology startups, spurred by Amazon’s launch of Amazon Go. However, the field quickly became crowded with competitors like Shopic, Trigo, Mashgin, and Caper (acquired by Instacart), all of which offered variations of computer vision and AI-powered shopping platforms.
Despite the competition, Grabango secured notable clients, including European grocery giant ALDI, which just six months ago introduced its ALDIgo checkout-free solution, powered by Grabango’s technology. Yet, as seen with Amazon’s recent rollback of its Go platform in Fresh stores, cashierless checkout needs to be carefully deployed because customers can sometimes find their friendly cashiers being replaced by a technology platform offputting.
Grabango’s shutdown is a reminder of the tough climate for startups today. The days of easy venture capital are over, and in highly competitive sectors like grocery tech, startups that can’t extend their financial runway or achieve profitability are vulnerable. It’s likely that Grabango’s assets and intellectual property will soon be scooped up by a competitor.
Leave a Reply