How sad: Grocery delivery service provider HappyFresh ceases operations in Malaysia

Photo: HappyFresh/Facebook
Photo: HappyFresh/Facebook

Grocery delivery service provider HappyFresh announced yesterday that it has ceased its operations in Malaysia due to the current economic slump.

It’s not very happy news for the company or the Malaysians it once employed. 

“It is with a heavy heart that the delivery of this message will be our last delivery to you. Over the past seven years, your trust and support have helped us provide jobs for over 850 employees, insurmountable growth for many of our smaller specialty stores, and indescribable joy to all HappyFreshers who have had the privilege to deliver groceries to your home,” the Jakarta-based startup said in a statement on Facebook. 

The online supermarket discontinued its delivery services earlier this month without giving a reason, although it was rumoured that the decision was motivated by recent financial difficulties. 

HappyFresh recently managed to secure fresh funding to resume its operations in Indonesia. But despite having raised at least RM443 million (US$97) million through stock fundraising and loan financing, the heavily indebted corporation said it was undertaking restructuring procedures.

Earlier this month, HappyFresh was said to have also halted grocery deliveries in some areas of Jakarta as it struggled to find new funding to support its operations. Senior executives apparently ceased managing their daily tasks at the time as well.

After conducting a strategic assessment, HappyFresh said in a statement on September 21 that it has obtained funds from investors to continue its online grocery business in Indonesia, avoiding a potential financial shortfall exacerbated by the regional economic downturn.

“We have gone through a lot,” Filippo Candrini, managing director of HappyFresh Indonesia, said in the statement. “Over the past weeks, when we paused operations, we saw numerous comments from customers across various social media platforms stating their reliance on our service offering, while requesting for the service to be resumed as soon as possible.”

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