Introduction
The recent exit of Jüsto de México has reignited one of the primary challenges for the entrepreneurial ecosystem: scaling without losing financial stability. The online supermarket announced its closure due to financial and strategic factors, a case that is not isolated among startups that once established themselves in the Mexican market.
Key Challenges for Startups in Mexico
According to the Association of Entrepreneurs of Mexico (Asem), the main reasons for a company’s failure in Mexico are the lack of liquidity, poor administrative management, and issues with partners.
Case Studies: Startups That Grew but Eventually Closed
1. SinDelantal
Founded in 2012, SinDelantal was one of the pioneers in home food delivery services in Mexico. Despite being among the first of its kind, it had to compete with UberEats and Rappi.
By 2020, the platform had 26 million users in Mexico. However, amidst the pandemic-driven surge in online shopping, SinDelantal announced its withdrawal from the Mexican market and shifted focus to other countries, such as Brazil.
2. Econduce
Eduardo Porta and Alejandro Morales saw an opportunity in the daily traffic chaos of Mexico City, leading to the creation of Econduce in 2015. The startup offered electric scooters to streamline transportation while being a less harmful alternative for the environment.
In January 2024, a fire broke out in a warehouse located in Colonia del Valle, Mexico City, reportedly due to two lithium-ion batteries catching fire. Although the warehouse belonged to Econduce, the company did not provide any explanation regarding the incident.
Despite securing funding and recognition, Econduce gradually faded away until it closed operations. Although no official closure announcement was made, the official website is inaccessible, and social media updates ceased a year ago.
3. Loly in the Sky
Loly in the Sky had more than a decade of presence in the Mexican market, offering vegan materials and unique designs. Founded by Lorena Vázquez and her brother Eduardo Vázquez, the brand had both online sales and physical stores.
Despite being a recognized and consolidated brand, complaints about poor quality and delayed orders from consumers began to surface. The situation escalated when the company unexpectedly stopped responding to messages in early June 2024 and announced layoffs during a Zoom meeting, stating that operations would close.
4. Jokr
Similar to SinDelantal, Jokr provided grocery home delivery services and promised orders within 15 minutes. Founded in 2021 by Aspa Lekka and Ralf Wenzel, the German-origin startup entered the Mexican market in March of that year.
By 2023, Jokr had 25 warehouses in various cities like Mexico City, Guadalajara, and Monterrey. However, they decided to cease operations in Mexico and focus on Brazil.
5. Beat
Founded in Greece by Nikos Drandakis in 2011, Beat offered shared rides and taxi services through an app. Upon arriving in Mexico in 2019, the company opted for electric cars available in central neighborhoods like Condesa, Roma, and Polanco.
Beat eventually closed its Latin American operations in November 2022 to concentrate on the European market.
Key Questions and Answers
- What challenges do startups face in Mexico? Key issues include lack of liquidity, poor administrative management, and partner-related problems.
- What happened to SinDelantal? Despite its success, SinDelantal withdrew from the Mexican market in 2020 to focus on Brazil amidst a pandemic-driven surge in online shopping.
- Why did Econduce close? Although the company secured funding and recognition, it gradually faded away until closing operations without providing an explanation for a warehouse fire in 2024.
- What led to Loly in the Sky’s closure? The brand faced consumer complaints about poor quality and delayed orders, ultimately leading to layoffs and the closure of operations in 2024.
- Why did Jokr leave Mexico? Jokr decided to cease operations in Mexico and focus on the Brazilian market by 2023.
- What was the outcome for Beat in Mexico? Beat closed its Latin American operations in November 2022 to prioritize the European market.
