Funding crunch prompts Honestbee Philippines to pause operations — report

MANILA, Philippines — Singapore-based grocery and food delivery platform Honestbee is reportedly facing financial problems, prompting the company to temporarily stop its operations in the Philippines.

Reports say Honestbee blasted an email last April 19 telling customers without elaborating that the company needed to pause its operations in the Philippines “as we work with our HeadQuarters towards bringing the total business to a healthy and sustainable level.”

Citing industry sources, TechCrunch on Friday reported that the online grocery delivery service is experiencing a funding crunch, adding that company officials are in talks with potential white knights.

TechCrunch also said Honestbee’s head of the Philippines — Crystal Gonzalez — has resigned.

“The company has held early conversations with a number of suitors in Asia, including ride-hailing giants Grab and Go-Jek, over the potential acquisition of part, or all, of its business,” TechCrunch said.

“From talking to several former and current staff, TechCrunch  has come to learn that Honestbee is laying off employees, it has a range of suppliers who are owed money, it has ‘paused’ its business in the Philippines, it has closed R&D centers in Vietnam and India, it isn’t going to make payroll in some markets and a range of executives have quit the firm in recent months,” it added.

Aside from the Philippines and Singapore, Honestbee also operates in Japan, Indonesia, Hong Kong, Malaysia, Thailand and Taiwan. — Ian Nicolas Cigaral