// STARTUP COMPARISON
Merama (2023 crisis) vs Privalia
Merama (2023 crisis) failed in 2023 due to Bad Timing. Privalia failed in 2016 due to Acquisition Gone Wrong. Different causes, different sectors, different eras — but the same simulation outcome.
| METRIC | 🔥 Merama (2023 crisis) | 🔥 Privalia |
|---|---|---|
| Sector | Ecommerce | Ecommerce |
| Country | Mexico | Spain |
| Founded | 2020 | 2006 |
| Died | 2023 | 2016 |
| Raised | $760M | €200M |
| Peak | $760M raised | €500M revenue |
| Primary Cause | Bad Timing | Acquisition Gone Wrong |
// WHY EACH FAILED
🔥 Merama (2023 crisis)
Bad Timing
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.
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.
🔥 Privalia
Acquisition Gone Wrong
Privalia, founded in Barcelona in 2006, was Spain's leading flash-sales platform operating in Spain, Italy, Brazil, and Mexico. It reached €500M in revenue by 2015 but faced mounting competition from Amazon and Zalando. Vente-privee (now Veepee) acquired Privalia in 2016 for €500M. The brand was eventually absorbed into Veepee and ceased to operate independently.
// LESSON
Being first in a category is not defensible when the category becomes a commodity feature for Amazon. The flash sale was a format, not a moat.
Being first in a category is not defensible when the category becomes a commodity feature for Amazon. The flash sale was a format, not a moat.
// EXPLORE FURTHER