Evaluating only Merama (2023 crisis)’s profile at its peak — without knowing the outcome — the model ranked Unit economics as the #1 likely cause. Documented cause: Market timing.
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Documented cause
Merama raised $760M to acquire and scale Latin American e-commerce brands — the same model as Thrasio in the US. When interest rates rose in 2022-2023, the leveraged acquisition model became unprofitable globally. Thrasio filed for bankruptcy. Merama laid off significant portions of its workforce and pivoted from acquisition to software services for existing brands in 2023.
Lesson
“Copying a US venture model in Latin America carries an additional risk: when the US model breaks due to macro conditions, the LatAm version breaks simultaneously with less capital to absorb the shock.”
FAQ
What happened to Merama?
Merama, a Latin American e-commerce brand aggregator that raised $760M, faced a crisis in 2023 when rising interest rates made the leveraged acquisition model unprofitable. It laid off staff and pivoted to software services for brands.