Business

Fund owner of Peixe Urbano buys Grow scooters startup

Only three Brazilian cities (São Paulo, Rio de Janeiro and Curitiba) still have Grow's services

Scooter rider in São Paulo. Photo: Shutterstock
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  • The value of the deal, according to the newspaper Valor Econômico, was not revealed;
  • On Monday, sources had revealed to other Brazilian newspaper O Estado de S.Paulo that Grow would be sold to Mountain Nazca for $1. The amount would be symbolic, since the new owner will receive the company’s debts.

The majority shareholding control of Grow Mobility, a startup that was born from the merger of the Mexican Grin, of renting electric scooters, with the Brazilian Yellow, of shared bicycles, in early 2019, now belongs to the Mountain Nazca group, a fund that has in its portfolio companies such as Peixe Urbano and Groupon LatAm.

The value of the deal, according to the newspaper Valor Econômico, was not revealed. On Monday, sources had revealed to other Brazilian newspaper O Estado de S.Paulo that Grow would be sold to Mountain Nazca for $1. The amount would be symbolic, since the new owner will receive the company’s debts.

READ ALSO: The ‘number 2’ ride-sharing app in Brazil, 99 does not want scooters and conducts its new delivery operation separately

As part of an attempt to restructure its operation, Grow had announced in January this year that it was leaving 14 Brazilian cities and suspending its bicycle rental service, maintaining only the offer of electric scooters. Rappi, which had been using the holding company’s structure, in a kind of equipment rental, also left the same 14 cities at the time.

READ ALSO: E-scooters are good for the environment. Well, not exactly

Only three cities (São Paulo, Rio de Janeiro and Curitiba) still have Grow’s services in the country.