Operations will cease entirely on December 14.
Digital supermarket startup Justo has announced it will shut down its operations in Brazil, the only country outside Mexico where it operated. After three years of providing a fully digital grocery delivery service, the company is exiting a segment that has proven difficult for both traditional retailers and digital newcomers. Orders will no longer be accepted after December 12, with operations set to close completely by December 14.
The company acknowledged the challenge of the decision, recognizing the positive impact it had on the market and its customers by offering high-quality, tech-driven online grocery services. Justo, which had been operating in Brazil since 2021, confirmed the closure but declined to offer further comment.
The closure follows Justo’s recent funding round in October 2024, led by General Atlantic, which contributed $70 million — $50 million in equity and $20 million in debt financing. Despite these investments, the company has struggled to scale in Brazil and other Latin American markets, where it had aimed to expand after acquiring Freshmart in Peru and partnering with Amazon in Mexico.
Founded in 2019, Justo operates as a digital supermarket offering a wide range of items, including fresh produce, meat, dairy, grains, snacks, and cleaning products, typically delivering within one to two business days.
Justo's exit opens opportunities for competitors like iFood, Rappi, Shopper, and Daki, but raises broader questions about the viability of the digital grocery delivery model, which often operates on thin margins. While iFood has shifted focus away from grocery delivery, Rappi is betting on ultrafast, 10-minute deliveries, and Daki is adjusting its business model in response to competition and changing consumer habits.
Source: Valor International
