http://blog.moolah.io/MOOLAH IS HAVING TO CLOSE ITS DOORS.October 14, 2014
After 10 months as a high-risk startup in a volatile environment, Moolah has reached a stage where it is unable to continue operations in today’s market. With rising costs and dropping revenue, and the loss of a number of key clients vital to the ongoing operation of the company, we are no longer able to continue functioning.
As a result of this, Moopay LTD will be filing for bankruptcy and dissolution following the administration process; and ceasing operations. All client funds held in consumer accounts are safe, and can be withdrawn as per normal at this moment in time. If you fail to withdraw your funds before the platform is shut down on October 31st, you will receive an email asking you where you want your funds to go.
Again, all funds held in consumer accounts are safe – consumer funds are essentially held in the equivalent of a client trust account and are fully separate. You can withdraw them via the normal route up until the end of the month.
Any businesses or entities with funds held in any other fashion with us, will be contacted over the next month as a part of the bankruptcy and creditor process. Very few businesses will be affected by this, as the vast majority of remaining businesses withdraw funds daily.
Once the administration process has fully completed, all assets are liquidated and creditors are paid off; the remaining funds will be divided accordingly between investors in the company. Details on this will follow.
While we have a solid consumer and merchant platform, our monthly costs to cover support, legal and operational expenses now greatly outweigh our incoming cashflow. In the space of a single month, we have rapidly burned through our reserves and are now in the position of having a negative balance sheet. Losing certain clients that we relied on for revenue, means that we do not have the funds to continue paying staff, or pay our suppliers. Our costs over the first year have been astronomical in terms of legal and operational expenses, and our staffing costs now greatly outweigh our incoming funds. A number of the team have spent the past 10 days in Asia (personally funded, not company funded) attempting to secure vital contracts that would ensure the future of the company, but these attempts proved fruitless given general opposition by the businesses in question in to entering in to agreements with non-Asian companies.
We have lasted longer than most expected us to, longer than we statistically should have, and held up against competition with millions in funding. Sadly, this has all come to an end; and we have joined the large list of startups that fail on a daily basis.
I would like to thank each and every member of the community that gave us a chance, and each and every member of the team – you all did an amazing job.
MintPalAs a result of this, MintPal will no longer be managed by Moolah (we do not own it, we are responsible for management). We have sourced a new management team for it, and the following will be occurring.
MintPal will be coming down immediately – in light of critical errors being disclosed. The new management team will be making a number of stability changes, UI improvements and bug fixes. They will also be handling the resolution of issues surrounding missing balances. An update will be following on mintpal.com shortly, with details of further timeframes.
In the interests of full disclosure, contrary to popular reports, I personally am not a majority shareholder in the holding company.
MoofarmMoofarm is entirely separate from Moopay LTD. If you are a part of Moofarm, you will shortly receive an email with further steps.
So long and thanks for all the fish,
Alex.
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