Grabango, an Amazon cashierless rival that offers checkout-free tech, shuts down after failing to secure funding

Grabango, the Silicon Valley startup that aimed to challenge Amazon in the cashierless checkout race, has closed its doors after failing to secure the necessary funding. The company joins a growing list of failed startups that have struggled in the wake of Silicon Valley Bank’s collapse in 2023.

“Grabango announced today it has permanently discontinued operations. Although the company established itself as a leader in checkout-free technology, it was not able to secure the funding it needed to continue providing service to its clients. The company would like to thank its employees, investors, and clients for their hard work and dedication. The decision was an extremely difficult one to make,” Grabango told The Spoon, which first reported the story.

Back in 2019, we covered Grabango when it raised $12 million in Series A funding to build out its product and expand its checkout-free tech in stores. Unfortunately, the startup faced increasing financial pressure, especially as rising interest rates made funding harder to come by.

Founded in 2016 by Will Glaser, Grabango was built to save people time by eliminating checkout lines. The company’s system, which relied on computer vision and machine learning to track items as shoppers picked them from the shelves, aimed to work across thousands of stores and handle tens of thousands of SKUs. Glaser, who previously co-founded Pandora, brought years of Bay Area tech experience to the company.

What set Grabango apart was its focus on an enterprise-level solution that could scale massively, relying on edge computing to handle millions of transactions simultaneously. Despite this innovation, the startup employed around 100 people, according to LinkedIn and Pitchbook data.

Cashierless Tech Startup Grabango Shuts Down Due to Lack of Funding

Grabango entered the scene amid a wave of investment in grocery checkout-free tech, fueled by Amazon’s introduction of Amazon Go. But the space soon became crowded with rivals like Shopic, Trigo, Mashgin, and Caper (which was later acquired by Instacart), each offering their own spin on AI-driven, computer vision-based shopping systems.

Grabango raised over $73 million, with the largest round happening in 2021 when it secured $39 million, led by Commerce Ventures, along with notable investors like Peter Thiel’s Founders Fund and the venture arms of Unilever and Honeywell.

Earlier this year, Glaser shared ambitions of taking the company public within a few years, eyeing a valuation between $10 billion and $15 billion. But the broader IPO market has cooled significantly since early 2022, and outside of a few AI-driven companies, most startups have struggled to raise capital, CNBC reported.

Based in Berkeley, Grabango was one of Amazon’s key competitors in cashierless checkout technology, alongside startups like AiFi and Trigo. The company has signed deals with major retailers including Aldi, Giant Eagle, 7-Eleven, and Circle K. Meanwhile, Amazon’s Just Walk Out tech has focused on convenience stores and other high-traffic locations like airports and stadiums.

In April, Amazon pulled its cashierless tech from U.S. Fresh stores and Whole Foods, citing challenges with its sensor-based system. Glaser had previously noted that Grabango’s use of computer vision, rather than shelf sensors, gave it a competitive edge for broader adoption.

Despite those technological advances, Grabango’s journey has come to an end. Grabango’s closure highlights the tough reality many startups face in today’s market. The era of abundant venture capital has passed, and in fiercely competitive industries like grocery tech, those unable to stretch their funding or reach profitability are at risk. The company now joins a list of other failed startups.

Grabango Team