👉 Background: Mr Yum and Me&u were both founded in Australia in 2018. They are both mobile ordering platforms for pubs and cafes that specialise in those little QR codes at restaurants that let you order without speaking to a waiter or waitress.

👉 What happened: In September 2023, the two companies decided to merge since they were competing against each other - with the same product - for the same customers. But now, the merged Me&u will lay off 10% of its workforce as they are desperate to reach breakeven in 2025.

👉 What else: When a merger takes place, there is often overlap in positions — two HR teams, two legal teams, two sales functions. So, in order to hit breakeven, Me&U has decided it’s time to clear the decks.

What's the key learning?

💡Business success isn’t just about growing fast; it’s about actually becoming profitable. Before merging with Me&u, Mr Yum had already raised over $100 million, but it hadn’t managed to reach profitability yet.

💡Fast-growing startups often prioritise rapid expansion to capture market share ahead of profitability. And Mr Yum was no different - it saw growth of 135% year on year in 2022.

💡So this decision to refocus on profitability instead of just growth may be a sign of a maturing business…or an impatient investor base who want to start seeing financial returns before an ultimate sale or IPO.