Latin American e-commerce firm Peixe is in advanced discussions to acquire electric scooter agency Grow Mobility, four sources with knowledge on the matter stated Tuesday, potentially the latest contract in a crowded industry where profitability remains a slippery goal.
The transaction’s terms are still being finalized. One scenario under discussion is a cashless deal in which Grow would gain stakes in Peixe, three of the sources stated, declining to be identified as the transaction isn’t yet public.
Grow, born from the merger of Mexican scooter firm Grin and its Brazilian rival Yellow in 2019, was among Latin America’s most prominent startups, attracting interest from prime venture capitalists in Silicon Valley.
However, the Mexico-based startup has starved in recent months to develop a sound business model, based on sources close to the company.
Grow Prez Sergio Romo refused to comment. Peixe Chai Felipe Henriquez didn’t respond to a request for comment. Peixe has functioned under the Groupon LatAm brand.
In recent times, scooter companies have won a following among consumers but have raised the anger of regulators and residents since the scooters clutter sidewalks and other public sites.
Grow’s quest for a buyer reflects a broader move in the scooter sector as entrepreneurs and buyers realize that the industry can only accommodate so many players, analysts say.