Evaluating only DeliverGT’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Competition.
Key Events Timeline
FOUNDING
Marco Castillo and Sofia Ruiz launch DeliverGT to serve Guatemala City's SME delivery market.
FUNDING
Raises $1.1M from Carao Ventures and 500 Startups; grows to 480 active merchants.
MARKET EXIT
Rappi launches in Guatemala with 70% subsidized delivery rates; merchant count begins freefall.
LAYOFF
Lays off 45 employees in June; company shuts down in August with under 60 active merchants remaining.
Full Analysis
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Documented cause
DeliverGT, a Guatemala City last-mile logistics startup co-founded by Marco Castillo and Sofia Ruiz in 2019, raised $1.1M from Carao Ventures and 500 Startups. The company grew to 150 delivery partners by 2021 but faced insurmountable competition from Rappi's 2021 Guatemala launch. Rappi subsidized deliveries at 70% below market rate. DeliverGT's monthly active merchants dropped from 480 to under 60 by Q2 2023. The company laid off 45 employees in June 2023 and shut down by August.
Lesson
“Regional startups need defensible niches — geography alone won't protect you from VC-subsidized giants.”