Business

Mobility startup Grow to be bought for $1 by Mountain Nazca fund

Scooter rider in São Paulo. Photo: Shutterstock
Ler em português
  • Grow was created after the merger of Brazilian Yellow and Mexican Grin, but accumulated huge debts;
  • Mountain Nazca should keep scooters working in São Paulo, Rio de Janeiro and Curitiba.

O Estado de S. Paulo revealed that the electric scooter startup Grow might be sold to the Latin American investment fund Mountain Nazca for the symbolic value of $1. The extremely low price derives from the company debts, as the new owner will take them over in the deal. The company was having financial problems and a lack of capital that led it to end operations in 14 cities in Brazil in January. Grow was created after the merger between Brazilian Yellow and Mexican Grin.

READ ALSO: For financial sustainability, Grow leaves 14 Brazilian cities

The Mountain Nazca fund company owns the Peixe Latam conglomerate, which controls ecommerce brands Groupon Latam and Peixe Urbano. According to Estadão, the deal was concluded by the co-founder of Mountain Nazca and chairman of Peixe Urbano, Felipe Henriquez Meyer.

READ ALSO: Grow, owner of the brands Grin and Yellow, plans to invest BRL 25 million in Brazil

According Estadão, which does not reveal its sources but characterizes them as close to the deal, Mountain Nazca should keep scooters working in São Paulo, Rio de Janeiro and Curitiba. Created last year, Grow was already born with the potential to become a unicorn. It negotiated an investment $150 million with SoftBank, which did not occur. With the stampede of employees and capital due to the disorderly expansion, the newspaper says that it will be up to the new owner of Grow to take advantage of the user database already built and maintain the business in these three cities.