Food ordering startup Eatsy shutters operations

Singapore

EATSY, a Singapore-based restaurant ordering and payment startup, has fully ceased operations.

Before it closed down in April, Eatsy had about 20 staff in Singapore and Indonesia. These employees received help in transitioning to other companies, founder Shaun Heng told The Business Times (BT). Mr Heng joined Binance-owned cryptocurrency data firm CoinMarketCap as chief of staff in May.

Eatsy sent out a notification to users of its app in March, informing them that it will stop operating from April 1 and reminding them to redeem their remaining cashback value. The startup said its operations were affected by the Covid-19 pandemic.

The company was founded in September 2017 with the aim of eliminating the inconvenience people face when having to wait in line for their food. The app allows users to order ahead and pay using their mobile phones. In turn, restaurants become more operationally efficient and capture customer data.

The startup entered the Indonesian market in November last year.

Eatsy raised a total of US$1.2 million in equity funding, according to data platform VentureCap Insights. Its biggest investor was East Ventures, the backer of Indonesian unicorns Tokopedia and Traveloka. East Ventures has a 21.4 per cent stake in the company.

Other backers of the company, with stakes below 2 per cent, included Quest Ventures, RedMart co-founders Roger Egan, Vikram Rupani and Rajesh Lingappa, and founder of lifestyle group Lo & Behold Wee Teng Wen. Mr Rupani no longer holds a stake in the firm.

Eatsy generated S$66,200 in revenue and a net loss of S$912,700 for the year ended June 30, 2019, according to regulatory filings. Total assets stood at S$748,900 as at June 30, 2019, against total liabilities of S$199,040.

East Ventures managing partner Willson Cuaca told BT: "It is heartbreaking that we have to wind down Eatsy, but at a personal level, we applaud how Shaun fought for the company and we will forever be a friend to him."