Grabango, the developer of cashierless checkout technology, is shutting down amidst lack of substantial funding, the company has told CNBC.

Launched in 2016 by Will Glaser, who also co-founded Pandora Media, Grabango is a provider of checkout-free technology for large-scale store chains.

It uses computer vision, retail technology, and artificial intelligence to identify items as they are picked up, allowing customers skip the line and complete payments using an app before they leave the shop.

“Although the company established itself as a leader in checkout-free technology, it was not able to secure the funding it needed to continue providing service to its clients,” a spokesperson said in a statement to the news outlet. “The company would like to thank its employees, investors, and clients for all their hard work and dedication.”

Grabango’s technology made it a direct competitor of Amazon’s Just Walk Out, a technology that allows customers to scan a credit card when they enter a store, pick up their items, and leave, skipping the traditional checkout process. During payment, a customer’s account is sent a receipt via email.

Other companies the firm was competing with include Autonomous Retail Shopping platform  AiFi and supply chain retailer Trigo.

In June 2021, Grabango Raised $39 million in a series B funding round led by Commerce Ventures with a range of investors including Founders Fund, Unilever Ventures, Honeywell Ventures, Rich Products Ventures, and WIND Ventures supporting the startup.

Since its establishment, the firm had a number of strategic partnerships including with Aldi and Giant Eagle, 7-Eleven and Circle K.

In September, Amazon said it was expanding its AI-powered Just Walk Out technology across further stadium and university locations.

The technology will be rolled out across six new stores at Lumen Field in Seattle and seven stores at Commanders Field outside of Washington D.C., while the company will also open its first store at the M&T Bank Stadium in Baltimore.

---