Enjoei IPO-ed on the B3 exchange in 2020, raising 1.1 billion reais on the promise of building Brazil leading second-hand fashion marketplace — and watched its stock fall 93 percent by 2023 as Shopee, Vinted, and Mercado Livre ate its market from all sides.
Evaluating only Enjoei’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. That’s exactly how it died.
Key Events Timeline
FOUNDING
Enjoei founded
PIVOT
Strategic pivot under pressure
SHUTDOWN
Zombie Startup: Enjoei ceases operations
Full Analysis
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Documented cause
Enjoei built a peer-to-peer fashion resale marketplace with a distinctive quirky brand that attracted a loyal community. Its IPO in October 2020 raised R$1.1B on COVID tailwinds for e-commerce. Post-IPO, Shopee entered Brazil with heavy subsidies, Vinted expanded its European model, and Mercado Livre doubled down on fashion resale. Enjoei margins compressed, GMV growth stalled, and the stock fell from R$8.50 to under R$0.60 — a 93 percent decline. Mass layoffs followed in 2022 and 2023.
Lesson
“Second-hand fashion marketplaces face three-way competition from Asian low-cost entrants, European category specialists, and local horizontal platforms — a community moat alone is insufficient when better-funded competitors subsidize supply and demand simultaneously.”