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Home›App Funding›Russian-funded grocery app Buyk furloughs its CEO as sanctions start to hit hard

Russian-funded grocery app Buyk furloughs its CEO as sanctions start to hit hard

By Margaret J. Beltran
March 8, 2022
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Grocery delivery app Buyk has fired its own CEO, who led the company’s efforts to raise US funds after its Russian funding was cut due to US sanctions.

CEO James Walker was furloughed Tuesday morning, according to messages Buyk officials sent to some of the 15-minute delivery app’s 650 employees in New York and Chicago.

The future of Buyk – which the company says will be to raise US funds, sell itself or declare bankruptcy – is now in the hands of its Russian co-founder, Rodion Shishkov, according to messages from the company shared with The Post.

Shishkov created Buyk last year as a spin-off of Russian delivery app Samokat, which is part-owned by sanctioned state bank Sberbank. Shishkov, co-founder Slava Bocharov and other investors with ties to Russia have funded Buyk since its inception last year – a position the company says became “untenable” last week as states United States imposed crippling sanctions on Russia.

Facing a funding crunch, Buyk abruptly furloughed 98% of its employees on Friday, then told them they would only receive their paychecks for the previous two weeks on time if the company is able to find new emergency financing or a buyer this week.

Buyk CEO James Walker was fired on Tuesday.

Before Walker himself joined the furlough slate on Tuesday, the CEO told employees over the weekend that he would “do everything I can to get the business started again.”

The CEO himself job a defiant selfie on Twitter on Monday morning, sporting a Buyk pin and writing that he was starting at “5am” with a “difficult week ahead”.

Since Walker introduced himself to employees as the executive who would push to save Buyk through new funding or a sale, many workers were left baffled when they learned of his leave on Tuesday.

To buy
Buyk’s 15-minute delivery service competes with Gopuff, Gorillas, and Fridge No More.
Spencer Platt

When Buyk employees in a group chat asked who would now lead the search for new funding, Buyk’s U.S. retail operations manager, Yana Pesotskaya, wrote, “Please donate give me time to figure out the next steps.”

But even as Pesotskaya – a former executive at Sberbank, Burger King and Under Armor in Moscow – told employees to be patient, she herself appeared to be looking for new work.

“Hello, looking for a new carrier [sic] opportunities,” Pesotskaya appeared to write in a Monday LinkedIn post. “Now settled in New York on an O1 visa, which allows me to work in the United States. But also looking for opportunities in Russia.

Angry Buyk employees circulated screenshots of what appeared to be Pesotskaya’s message on Tuesday as they waited to hear if they had any hope of keeping their own jobs or receiving their wages on time.

Buyk, Pesotskaya and Shishkov did not immediately respond to requests for comment, while Walker could not be reached directly.

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