Westwing, a home and decoration company, is proposing a capital reduction of R$ 60 million, a measure that needs to be approved by an extraordinary general meeting.
With R$121 million in cash, Westwing is an example of a company whose value is less than its cash balance. Currently, its market value is R$74.6 million. In its IPO in 2021, when it raised R$1.1 billion, the company was valued at R$1.55 billion.
The decision is also part of a move that signals the beginning of a turning point in its restructuring. In the fourth quarter, released on Friday, March 20, the company recorded cash generation of R$ 19.4 million and returned to growth in sales volume (GMV) for the first time since 2022.
The decision to reduce capital comes after the entry of new investors, who acquired the 31.87% stake previously held by Mastercard, following the execution of a fiduciary guarantee due to Will Bank's default.
Oriz, which now holds 32.1%, HIX Capital (8.3%), and BlueOak (6.6%) have acquired stakes in Westwing. NeoFeed has learned that Leblon Equities also purchased a stake of less than 5%.
At the same time, André Machado, who took over the leadership of Westwing in August 2025, has been implementing a new strategy that has led the company to reduce its cash burn. In 2025, cash consumption was R$ 5.6 million, representing an improvement of R$ 6.8 million compared to 2024.
“The company has reached a point where cash has ceased to be a defensive cushion and has become a strategic asset. This allows us to adjust the capital structure responsibly,” Machado tells NeoFeed .
When André Machado took over the company's operations, Westwing was still essentially a retail business with a technology company mindset, lacking a clear value proposition for the consumer.
“André did a thorough cleanup. He simplified the portfolio, adjusted costs, and brought the business closer to breakeven ,” says Gustavo Heilberg, partner at HIX Capital.
Among the measures, Machado streamlined the portfolio, eliminating non- core categories. He also reduced the number of SKUs and prioritized a more fixed assortment, reinforcing the private label brand, Westwing Collection, to gain margin and differentiation.
Private label products grew 63.6% in the fourth quarter, compared to the same period last year. In the accumulated period of 2025, the GMV of this category advanced 26.3%, with a gain of 4.6 percentage points in market share.
Other measures included changing the logistics strategy, with greater use of its own inventory to reduce delivery times and improve the website experience.
"Deadline is a major conversion factor. If you want to be relevant in retail, you need to deliver better and faster," says the CEO, explaining why logistics has become a central part of the strategy.
In 2025, Westwing's shares, priced at R$6.72, will have accumulated an appreciation of over 20%. In 12 months, the shares have risen more than 30%. Since the IPO, however, the shares have already lost more than 90% of their market value.
