// STARTUP COMPARISON
Kichink vs Debenhams
Kichink failed in 2018 due to Competition. Debenhams failed in 2021 due to Competition. Both failed for the same reason — Competition.
| METRIC | 🔥 Kichink | 🔥 Debenhams |
|---|---|---|
| Sector | Ecommerce | Ecommerce |
| Country | Mexico | UK |
| Founded | 2012 | 1778 |
| Died | 2018 | 2021 |
| Raised | $10M | Public company |
| Peak | $10M raised | £2.9B revenue · 166 stores |
| Primary Cause | Competition | Competition |
// WHY EACH FAILED
🔥 Kichink
Competition
Kichink was a Mexican e-commerce platform for SMEs, providing tools to create online stores. After raising $10M and building a 30,000-merchant base, Shopify launched aggressive expansion in Mexico with Spanish-language support, competitive pricing, and a global app ecosystem. Kichink could not compete on platform breadth or pricing and closed in 2018.
// LESSON
Building a local version of a US platform works until the US platform localizes. The window is real but finite. Raise and achieve defensibility — deep local integrations, regulatory expertise, community — before the original arrives.
Building a local version of a US platform works until the US platform localizes. The window is real but finite. Raise and achieve defensibility — deep local integrations, regulatory expertise, community — before the original arrives.
🔥 Debenhams
Competition
Debenhams entered administration in April 2019, was rescued, entered administration again in December 2020, and closed all 166 stores in May 2021. A combination of online retail competition, £600M in private equity debt loading, and COVID-19 lockdowns destroyed the business over a decade.
// LESSON
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
Private equity debt loading on a structurally declining business accelerates the inevitable. Debt amplifies both upside and downside. On the way down, it is a death sentence.
// EXPLORE FURTHER