The holding company had agreements signed with 18 mid-sized ecommerces in different verticals, for a roll up operation that would consolidate the companies and organize them for an IPO. This would generate productivity gains and access to cheap capital that is/was needed to scale the business.
The money was used to audit and organize the company to raise between 50mm/100mm in a pre-IPO deal. The end of the e-commerce boom in Brazil made it really hard to raise the money needed to actually consolidate the business, and after two years of attempts and a couple of term-sheets the deal did not go through and management decided to close the business.
HBS MBA, serial entrepreneur co-founder of Spring Wireless.