CozyKin, a Boston-area “nanny-share” startup, abruptly announced Tuesday to employees and clients that it would shut down, leaving surprised nannies out of work and parents scrambling to find someone to care for their children after this month.
“We worked diligently over the past few years to keep improving and deliver on our values,” CozyKin management wrote in an e-mail to employees. “We are disappointed that this will not be the service to bring this vision to life.”
The company said in e-mails that its last day of operation would be Oct. 31. The move will affect 148 employees, the company said in a notification filed with the state.
It was a swift, surprising fall for a startup that raised $6 million from investors just last May. The company had announced plans to expand into New York City in the spring.
The company told Boston 25 News the move was due to “financial reasons,” but declined to elaborate.
CozyKin functioned by pairing families with similar needs, then assigning the group with a nanny to give Montessori-inspired care and education to their children. The service was aimed at families with infants and toddlers.
The startup promoted its high quality of care, emphasizing on its website that nannies were carefully vetted, had previous experience in child care, and were trained to administer CozyKin’s unique curriculum. It also focused on convenience, with families being able to leave their children at home with nannies and plan care schedules months in advance. Pricing varied according to each family’s needs, but the company’s website advertised the possibility of paying $1,500 a month.
CozyKin won the startup competition MassChallenge’s grand prize in 2017, where it was described as the “sharing economy for child care.”