Since its establishment in Germany in 2020, the market has grown to account for one-third of Matsmart's total revenue. Despite a customer base of 300,000 active consumers, the path to profitability has been fraught with obstacles.
A central reason for the difficulties is a logistics agreement with the German company Fiege. The agreement has resulted in high costs that have made it difficult to achieve profitability in the market. After negotiations, the parties have now agreed to terminate the cooperation.
We have reached an agreement on a controlled shutdown over the next few months. Fiege has been involved in the process and supports this decision, says CEO Sofie Zettergren to the site.
"Concerns About Profitability"
By leaving Germany, the company can stop the capital outflow that the investment required and instead strengthen the cash flow in existing parts. The process means that the company gains more control over its financial future and creates security for employees in the long run.
We are in a turbulent time where the capital market is difficult and the willingness to take risks is generally low. Investors see a concern about how long it takes to achieve profitability in a market like the German one, explains Sofie Zettergren.
Full Focus on the Nordics
Going forward, resources will be allocated to Sweden, Finland and Denmark. The Nordic business has a turnover of approximately SEK 800 million and the goal is to achieve a positive result by 2026.
In 2024, the group's turnover amounted to SEK 1.2 billion with an operating loss of SEK 348 million. The shutdown in Germany affects around 20 employees as the business is now being phased out to secure the company's position in the Nordics.