The Peruvian startup Favo officially announced the closure of operations in Brazil. With the departure, the company laid off 170 employees in the country, keeping about 40 people on the team.
Favo launched in Brazil in 2019, the company had the proposal to connect industries and neighborhood markets, in one of the first bets on the so-called social commerce in Latin America. The business has attracted major investors in recent years, such as Tiger Global and GFC.
At the end of 2021, Favo opened a new distribution center, 7x larger than the previous one, and anticipated plans to reach all capitals and large urban centers in Brazil in 2022 (until then, it only operated in the capital), in addition to expand its operations to Mexico. Now, with the announcement of closure in Brazil, Favo will continue to exist only in the neighboring Latin country.
In a note, the company regretted the closure of operations, but said it believed in the reopening in the future. “We believe that we will reestablish our business in the country soon, as soon as macroeconomic conditions allow”, writes Favo.