Frubana Exits Colombia and Mexico to Focus on Brazil

Frubana, an agri-food startup, has announced its withdrawal from Colombia and Mexico, two of the three countries where it operated. This decision follows a strategic shift aimed at consolidating its presence in Brazil, where it continues to service four cities: Campinas, São Paulo, Belo Horizonte, and Curitiba. The company’s exit from Colombia will be completed shortly, despite its significant presence in cities like Bogotá, Medellín, and Barranquilla, where it served over 30,000 restaurants and reduced food waste to 1%.

The move is attributed to challenging macroeconomic conditions, which have hindered the company’s ability to secure the necessary funding to sustain its operations in these markets. Frubana’s focus on Brazil, which accounts for 60% of its revenue, reflects a broader strategy to stabilize and prioritize resources. The company, which raised $277 million in funding, plans to maintain its obligations to suppliers and employees in Colombia while keeping the door open for a potential return within the next five years.

CEO Fabián Gómez Gutiérrez highlighted that despite the setbacks, the company’s operations had facilitated significant benefits for farmers and restaurants, including streamlined supply chains and reduced operational burdens for restaurant owners. Frubana’s sales in 2022 reached $300 million, demonstrating a 50% annual growth rate, further underscoring its previous expansion plans into new cities and service enhancements, including financial services for restaurants.

Frubana’s strategy reflects a reassessment of its priorities in response to economic challenges, with a commitment to preserving the positive impacts achieved in the local markets where it previously operated.