What are the drawbacks of creating a whole backend application using a set of Azure functions with a single database?

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Our development team planning the backend application for one of our upcoming project. Initial plan was a .Net core web API project.

But later team has decided to develop it as a fully serverless web application using Azure functions and Azure API Management. This will be best if we can plan it similar to Micro service architecture, dedicated database for each function app. But we have only a single MongoDB(In Atlas) instance for the whole application.

What are the drawbacks of creating a whole backend application using Azure functions with a single database?

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