Latam unicorn Merama cuts nearly 10% of staff amid 'strategy' refocus

Latin American e-commerce unicorn Merama cut nearly 10% of its staff this week, its CEO told Reuters on Thursday, describing the move as part of a shift in focus as it enters a new growth phase rather than "a cost saving exercise."

The company, which has raised $345 million in funding from the likes of SoftBank Group 9984 and was last valued at $1.2 billion, has headquarters in Mexico and Brazil. It aggregates fast-growing online brands to centrally manage areas like marketing and supply chain management.

CEO Sujay Tyle said the total number laid off was around 8-9%, with the company's headcount remaining over 400 employees.

He added that those affected were concentrated in projects that were no longer a priority, with plans to refocus on brands generating over $15 million in revenue.

"It was a difficult day," Tyle said of the layoffs, adding there were no plans for another series of job cuts.

Tyle added that the company had a "quite healthy runway" and was now cash flow positive.

It comes as Latin American startups in May saw an 82% year-on-year drop in venture funding, according to data group Sling Hub, as high interest rates and fears of a recession shook up global markets and rocked tech valuations.

Countless startups across the region have had to downsize amid a funding squeeze, with the likes of Provu, the Brazilian BNPL-adjacent fintech, and Addi, a Colombian fintech unicorn, announcing substantial layoffs in recent weeks.