Rapid grocery-delivery app Buyk Corp. filed for bankruptcy and will permanently shut down after fallout from Russia’s invasion of Ukraine restricted the startup’s access to funding, Bloomberg reported. Buyk, which launched in New York last year, listed assets and liabilities of as much as $10 million each in its bankruptcy petition. The company has ceased operations and plans to sell off remaining its remaining inventory. Buyk struggled to access financing after President Vladimir Putin restricted the flow of money outside of the country, CEO James Walker said. The startup has been exploring selling itself in a bid to secure capital. The company listed its co-founders, Slava Bocharov and Rodion Shishkov, as its largest equityholders. Buyk sought court protection “in view of the inability of the investors to further fund the ongoing business.” Buyk’s founders also started the delivery service Samokat, one of Russia’s biggest instant grocery-delivery companies. It’s partially owned by state-controlled bank Sberbank, which landed last month on the list of sanctioned entities by the U.S. government over Russia’s invasion of Ukraine. Buyk has arranged a loan of $6.5 million to help cover costs while in bankruptcy. The first $5 million is earmarked for the payment of employees and couriers. The firm recently furloughed almost all its employees — about 900 people — amid financial concerns. The startup’s founders are Russian and had been providing bridge financing while the company prepared to close its next funding round.
