US-based automated retail technology developer Stockwell will shut down at the start of July after raising $45m from investors including internet and technology conglomerate Alphabet, TechCrunch reported on Tuesday.
Stockwell provides small automated vending machines that stock a variety of snacks and household items, for installation in places such as university campuses or businesses. It maintains the machines and customers can pay for items through the Stockwell app.
However, the coronavirus lockdowns have led to many of those locations essentially being deserted. Paul McDonald, co-founder and CEO of Stockwell, told TechCrunch: “Regretfully, the current landscape has created a situation in which we can no longer continue our operations and will be winding down the company on July 1st.”
The company was founded in 2016 as Bodega but was forced to change its name due to the widespread perception it was seeking to capitalise on the imagery of local stores often run by ethnic minority owners, while promoting technology that would put them out of business.
Alphabet subsidiary GV and venture capital firm New Enterprise Associates were among the participants in a $35m series B round for Stockwell in late 2018 that was subsequently disclosed in September 2019.
The round valued the company at $100m and it followed $10m from investors including First Round Capital, DCM, Homebrew and Forerunner Ventures across two rounds in 2017 and early 2018.
