Introduction
With the recent exit of Jüsto de México, one of the main challenges for the entrepreneurial ecosystem has been revisited: 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 primary 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, it had 26 million users in Mexico using the platform. However, despite the pandemic boosting online shopping, the company announced its withdrawal from the Mexican market in December 2020, focusing instead on other countries like 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 and promote a more environmentally friendly option.
However, 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 there was no official announcement, the company’s website and social media accounts stopped updating a year prior.
3. Loly in the Sky
Loly in the Sky had more than a decade of presence in the Mexican market, offering unique designs and vegan materials for footwear. Founded by Lorena Vázquez and her brother Eduardo Vázquez, they operated both online and physical stores.
Despite being a recognized brand, consumer complaints about poor quality and delayed orders began to surface. The situation escalated in early June 2024 when the company suddenly stopped responding to messages and announced layoffs during a Zoom meeting, signaling the closure of operations.
4. Jokr
Similar to SinDelantal, Jokr offered grocery deliveries within 15 minutes. Founded in 2021 by Aspa Lekka and Ralf Wenzel, the German-origin startup entered the Mexican market in March of that same year.
By 2023, it had 25 outlets in cities like Mexico City, Guadalajara, and Monterrey. However, the company 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
- Q: What challenges do startups face in Mexico? A: Key challenges include maintaining financial stability while scaling, managing administrative issues, and addressing partner-related problems.
- Q: What factors led to the closure of Jüsto de México? A: Financial and strategic factors were the main reasons for Jüsto de México’s closure.
- Q: What happened to Econduce? A: Despite initial success, Econduce faced a warehouse fire in 2024 and gradually faded away until closing operations without an official announcement.
- Q: Why did Loly in the Sky close? A: Consumer complaints about poor quality and delayed orders, coupled with sudden layoffs, signaled the closure of Loly in the Sky.
- Q: What led to Jokr’s decision to leave the Mexican market? A: Jokr decided to cease operations in Mexico and focus on the Brazilian market by 2023.
- Q: How did Beat’s Mexican operations end? A: Beat closed its Latin American operations in November 2022 to prioritize the European market.
