Grabango, a venture-backed startup developing cashierless checkout technology to rival Amazon’s Just Walk Out, has ceased operations after failing to raise enough capital to stay afloat.
A spokesperson confirmed on Wednesday that despite establishing itself as a leader in checkout-free technology, the company could not secure sufficient funding to continue providing services.
Founded in 2016 by Will Glaser, co-founder of Pandora, Grabango used computer vision and machine learning to streamline the shopping experience by tracking and tallying items as shoppers picked them off shelves.
Once a rival to Amazon, Grabango halts operations after struggling to secure financing.At its peak, the company employed around 100 people and raised over $73 million, with a notable $39 million round in 2021 led by Commerce Ventures.
Investors included Peter Thiel’s Founders Fund, Unilever, and Honeywell.
Though Grabango had ambitious plans for an IPO in the next few years, aiming for a market cap of $10-$15 billion, the tightening venture capital landscape and dried-up IPO market since 2022 hindered its ability to continue.
The startup had signed deals with major grocers like Aldi and Giant Eagle, as well as convenience store chains 7-Eleven and Circle K.
Grabango was considered a strong competitor to Amazon’s cashierless tech but differentiated itself by using computer vision instead of shelf sensors, which Glaser believed would lead to broader adoption.
Despite its promising technology, Grabango’s inability to secure further funding has led to its closure.