Formally known as ICart Group Pte, the company’s business has faced challenges in the face of slowing economic growth, surging inflation and higher interest rates. — Photo by Maria Lin Kim on Unsplash
HappyFresh has shut down operations in Malaysia and Thailand after struggling in those countries, leaving the embattled grocery delivery startup to focus on its main Indonesian market.
The Instacart-style delivery service said it was left with no choice but to cease operations in the two markets, according to posts on its local Instagram accounts on Thursday. It will stop its grocery business effective immediately, just days after the startup said it secured fresh funding and resumed operations in Indonesia.
Jakarta-based HappyFresh, which struggled this year to raise capital after a sharp downturn in the young online grocery sector, is working with venture debt funds Genesis, Innoven and Mars on restructuring its business. Representatives of US firm Kroll replaced three former directors on its board as part of the effort.
Founded in 2014 as one of the first Instacart-style grocery delivery services in Southeast Asia, HappyFresh has raised at least US$97 million (RM443.2mil) in equity funding in addition to debt financing. Formally known as ICart Group Pte, the company’s business has faced challenges in the face of slowing economic growth, surging inflation and higher interest rates. – Bloomberg
