HappyFresh in Trouble, Puts Investors in Jeopardy

HappyFresh is reportedly in financial problems. A Bloomberg source said that the e-grocery platform hired consultant Alvarez & Marsal to audit its financial state after failing to secure fresh funding. Meanwhile, Tech in Asia sources from HappyFresh's employees and former employees revealed that the company has not yet paid the August salaries of several employees. Some even doubted the company's ability to pay September salaries. "Management has announced at the town hall meeting on September 2 that CEO Guillem Segarra, COO Christoph Krauss, and SVP Finance and People Frederic Verin have temporarily stepped down from active daily duties pending further clarification," wrote Tech in Asia.

Meanwhile, DealStreetAsia reported that staff layoffs also occurred, even though the exact figure is unclear. Services in several areas in Jakarta have stopped as well. Customers could not book delivery time slots and make payments via the app. Based on the email seen by Tech in Asia, on August 23, HappyFresh had a meeting in which management announced that August salaries were indefinitely suspended. Several sources stated that management planned to announce HappyFresh's operational continuity on August 26, but the meeting was canceled.