- Indonesian B2B startup GudangAda denied reports it may shut down soon.
- The company says it remains operational, highlighting growth in new categories.
- However, GudangAda continues to post losses despite 10x revenue growth in 2022.
“We are operational”
Indonesian B2B e-commerce firm GudangAda has denied reports it may shut down operations in the near future.
The company stated it “remains operational” and is expanding into new categories showing promise, like beauty and personal care.
The denial follows a report by DealStreetAsia that GudangAda’s board is weighing options which include winding down the business.
The board is also reportedly mulling returning capital to investors as it deliberates the company’s future, though no decisions have been made yet.
Revenue grows… but not profits
GudangAda said business strategy discussions are routine and any capital allocation choices will be communicated transparently when ready.
The firm highlighted “significant growth” in its new categories, which comprised 37% of February 2024 revenue.
The statements come as B2B e-commerce startups have recently struggled.
GudangAda saw 10x revenue growth to $50 million in 2022 but missed its break-even goal as losses widened to $33 million.
The company last raised $100 million in July 2021 for its Series B round, bringing total funds raised to $135 million.
To read the original article in its entirety: https://www.techinasia.com/gudangada-denies-report-shutdown
