Sydney, Apr 12 (IANS): Australian grocery delivery startup MilkRun has decided to shut shop and laid off 400 employees amid the gloomy global economic scenario.

According to Forbes Australia, its co-founder Dany Milham told the staff that the company will wind down business on April 14.

"Since we announced our structural changes in February, economic and capital market conditions have continued to deteriorate, and while the business has continued to perform well, we feel strongly that this is the right decision in the current environment," Milham was quoted as saying.

MilkRun in February had announced it would make 20 per cent of its then staff redundant, as part of a move to consolidate its delivery hubs.

"We've always been committed to doing things the right way, and winding down the business while we still have a sufficient cash balance enables us to ensure our people and suppliers are paid in full," the co-founder told employees.

All staff would be made redundant at the startup MilkRun that was launched during the pandemic in 2021.

It secured a $11 million seed round and in early 2022, the startup raised further $75 million that included US-based Tiger Global Management.

According to McKinsey, in the first nine months of 2021, nearly $5.8 billion was invested globally into adark convenience stores'.

However, as the pandemic waned, the popularity of instant grocery delivery platforms also decreased.

Global grocery delivery player Gopuff announced its third round of layoffs in 12 months in March this year.

Gorillas laid off more than 100 workers and exited three countries in 2022.