Social media-based food-ordering platform Gobble has shut down in Singapore after more than 18 months of operations.
The company’s founders announced the closure on their LinkedIn page. One of them, Ashwin Purushottam, cited the company’s inability to raise additional funding to fuel its growth as the main cause of the company’s failure.
“Running a group-buying marketplace in a space such as food ordering, which has seen an onslaught of disappointing IPOs, set an unfortunate precedent for our next fundraise,” said Purushottam.
The platform reached US$350,000 in annual gross merchandise value with revenue surging by 47 per cent month-on-month. However, despite the high volume of sales, the profit margins were too low for the company to continue running.
“As we continue to grow and develop Gobble, we realised that relying solely on a B2C model wasn’t sustainable for us,” said fellow co-founder Domenico Tan. “We failed to show a quick enough path to positive cash flow. With our current funding, we knew we would not be able to generate enough revenue just from Singapore to raise our Series A.”
The food pick-up app for discount group orders was founded by the two entrepreneurs in 2021. The company subsequently bagged $1.3 million in a seed round led by Beenext and Flash Ventures.
According to a report released by Grab and Euromonitor International, the Southeast Asian online food delivery gross merchandise value is estimated to grow from US$9 billion in 2020 to $28 billion in 2025.