"I'm proud of what we created at Brandless and the hard work and dedication of everyone on the team", Brandless CEO Evan Price said in a statement to Business Insider. "The firm thinks SoftBank's net asset value could be about $230 billion but that it trades at a huge discount because of concerns around its Vision Fund, as well as how the failed initial public offering of WeWork past year was handled", the Times suggested. On July 31, 2018, the massive SoftBank Vision Fund invested US$ 240 million in Brandless via Series C round, which valued the company at just over US$ 500 million. But this also means that Public Goods is under less pressure to quickly turn a profit and grow so quickly, and this may save it from Brandless's fate.More news: Deadliest day yet in coronavirus outbreak
Brandless's board had been evaluating its position for several weeks and ultimately made a decision to shut down and use the remaining cash for severance for employees, according to a person familiar with the matter who asked not to be identified discussing private information. It has been reported that ten employees would stay on board to process any remaining orders and "evaluate any acquisition offers". Shoppers are no more able to area orders on the website.
Brandless, the retail startup that shared a financier with Uber as well as WeWork, is shutting down after much less than 3 years in company.More news: Heres the truth about the Broom Challenge
"But, the organization's business model was" unsustainable" from the" fiercely competitive" direct-to-consumer marketplace, the Brandless board stated in a joint statement to CNBC. At the time, the Vision Fund was stunning Silicon Valley with investments like $2.5 billion into India's Flipkart and another $2.25 billion into General Motors Co.'s autonomous vehicle business, Cruise.
SoftBank CEO Masayoshi Son's judgment was questioned in the past, and he has had to apologize for his track record. His plan, according to Protocol, was to take more Brandless products to physical stores, but last December, he had quietly resigned and left Brandless.More news: Two more arrested over Vietnamese truck deaths, United Kingdom police say