Eurora was declared bankrupt

Estonian Harju County Court declared tax and customs company Eurora bankrupt. Eurora has liabilities for at least €6.4M, including payroll liabilities. The management board estimates the market value of the assets at €2.5M. 

Eurora did not pay more than €1M in taxes to the Estonian state. Also, at the end of October, it had debts for the rent of office premises in Tallinn and Tartu.

At the beginning of September, Eurora announced 111 layoffs. At the end of September, Eurora applied for bankruptcy, explaining its lack of sufficient working capital to cover its obligations. It is not clear if the initial reason for the bankruptcy was Eurora's mismanagement or possible crimes. The trustee in bankruptcy is Maire Arm.

Before the first meeting of creditors on the 30th of November, the former head of Eurora Anneli Aljas, and Eurora's CIO and management board member Kaie Hansson will have to confirm under oath that the information on assets, debts, and economic or professional activities submitted to the court is correct. If they do not confirm it, they can be forced to come to court or will be arrested for up to three months. The creditors can file lawsuits against the startup within two months.

Founded in 2022 by Marko Lastik, Eurora developed an e-commerce suite of customs compliance tools. It simplified all processes for small and medium-sized enterprises related to cross-border trade and logistics, collecting taxes, and managing payments. Eurora’s platform allowed companies to fully automate global trade and compliance processes with the help of AI-based solutions. In 2022, the startup raised $40M from Amsterdam-based Connected Capital, Estonian investment firm @changeventures Change Ventures, Tallinn-based company Equity United, and others.