Inside the ‘shotgun’ merger of rival apps backed by AirTree, Hemmes

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The merger Mr Yum and me&u is the highest profile example so far of a growing wave of consolidation across the start-up sector, industry insiders and investors say.

u spent months jostling over who would get more of their money back if things were to go poorly for the companies that merged last week.

Mr Yum co-founder Kim Teo is chief executive of the merged entity while Stevan Premutico of me&u will be a non-executive board director.u just the most prominent of a run of mergers and sales that includes fitness app Steppen, delivery company Drive Yello, cafe-ordering app Hey You and ordering company Ordermentum.

The union between the two rivals took several months to complete, with insiders pointing to the squabbling over which parties would share the pain of dilution: venture investors for both companies or the founders.

 

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