Honestbee is quickly running out of money. In light of this unfortunate turn of events, the company is eyeing to sell its business.
Tech Crunch reports that the monthly operations of the grocery delivery startup have been taking a toll on the overall financial situation of the company. As a matter of fact, the news site states that its monthly operations are losing the business millions of money per month.
Following this news, Tech in Asia reports that the company has been finding ways to keep its business afloat. One of the more practical solutions it sees is by selling the business. Some of the interested parties include ride-hailing giants, namely Grab and Go-Jek.
Tech Crunch notes that Honestbee is currently in the talks with these ride-hailing giants and other prospective buyers. The startup reportedly wants buyers to take part in the company to buy some shares or to acquire the whole business.
Founded in 2015, Honestbee has worked with numerous grocery stores and supermarkets in different parts of Asia. Based in Singapore, the grocery delivery business has also set up shop in other parts of Asia. These include Hong Kong, Indonesia, Japan, Malaysia, Singapore, Taiwan, and Thailand.
Despite its initial demand and success, sources report that Honestbee can no longer pay their employees for the month. Inside Retail Asia state that Hong Kong and Thailand branches have decided to lay off employees. Meanwhile, Indonesia, Japan, and the Philippines already experienced senior management leaving the company.
Meanwhile, Tech in Asia shares that research and development sites in India and Vietnam have also been shut down.
In 2018, the company reportedly experienced a staggering loss of around $6.5 million. The financial troubles in the industry are attributed to high marketing costs, huge investments in digital advertising, discounts, and recruitment reports Insider Retail Asia.