Evaluating only Gyra+’s profile at its peak — without knowing the outcome — the model ranked Competition as the #1 likely cause. Documented cause: Unit economics.
Key Events Timeline
FOUNDING
Gyra+ founded in São Paulo to offer credit lines to micro and small businesses.
FUNDING
Raised R$50M Series A backed by Valor Capital Group and SoftBank Latam Fund.
LAYOFF
Cut 60% of workforce as Selic rate at 13.75% destroyed lending margins and defaults rose.
SHUTDOWN
Ceased all new lending operations and effectively shut down amid unsustainable cost of capital.
Full Analysis
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Documented cause
Gyra+ was a São Paulo-based SME lending fintech that raised ~R$50M from investors including Valor Capital and SoftBank's Latam Fund. Rising Brazilian interest rates (Selic hitting 13.75% in 2022) crushed their credit margins, while default rates among small business borrowers spiked post-pandemic. The company laid off 60% of staff in early 2023 and ceased new lending operations by mid-2023.
Lesson
“Lending startups must stress-test unit economics against 300bps+ rate hikes before scaling.”