Struggling US-based digital mail company Zumbox has announced that it is shutting down after seven years.
The company decided to call it quits despite receiving around $30m in investment from investors including Australia-based share registry company ComputerShare and investment fund Shelter Capital Partners.
Zumbox received a $10.6m investment from Australian share registry company ComputerShare in 2012, which was spent primarily on marketing and product expansion, but that cash injection was not enough to stave off growing competition from well-funded competitors such as the Location Labs-owned Volly and Manilla, which was incubated by the Hearst Corporation.
The investment from Computershare also included a partnership to expand Zumbox’s services in Australia under the name Digital Post Australia. However the partnership was put under pressure when the service was dragged into the courts by Australia Post over claims of brand infringement. Zumbox eventually won the case last year.