SAO PAULO/MEXICO CITY, March 11 (Reuters) - Venture capital fund Mountain Nazca has acquired a controlling stake in unlisted Latin American scooter firm Grow Mobility, the companies said on Wednesday, without disclosing financial details.
Under terms of the deal, in which no cash was exchanged, Grow investors will retain about 20% of the company, according to a person with direct knowledge of the transaction.
As part of the change in its shareholding structure, Grow said mobility vice president Roberto Álvarez Cadavieco will become its global chief executive.
“My focus now is the following: to offer the best experience to our users and have a profitable business model that allows the company to grow in a sustainable way,” Cadavieco said in a statement.
Grow, formed from the merger of Mexican scooter startup Grin and its Brazilian counterpart Yellow last year, was among Latin America’s most prominent startups, attracting interest from top venture capitalists in Silicon Valley.
But it has struggled in recent months to find a sound business model, according to people close to the company.
Founded in 2013, Mountain Nazca venture capital fund owns e-commerce platforms Peixe Urbano and Groupon LatAm, as well as Mobike, according to the statement. (Reporting by Gabriela Mello in Sao Paulo and Julia Love in Mexico City Editing by Matthew Lewis)