Evaluating only Addi (restructuring)’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Addi (restructuring) founded
DOWN ROUND
Down round or bridge financing
SHUTDOWN
Mass Layoff Spiral: Addi (restructuring) ceases operations
Full Analysis
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Documented cause
Addi built buy-now-pay-later credit for Colombian and Brazilian consumers at retail points of sale. It raised $200M+ and reached a $700M+ valuation. Like all BNPL platforms globally, the 2022 interest rate cycle crushed the model: cost of capital rose sharply, default rates increased as consumers under inflation stress missed payments, and the growth narrative that had justified its valuation evaporated. Mass layoffs in 2023 reset the company to a far smaller operational footprint.
Lesson
“Any credit model whose unit economics depend on rates staying below 3% is a fragile house of cards. Build in rate-stress scenarios before raising growth capital.”