Honestbee investigating transactions under ex-CEO Joel Sng

A cluster of resort houses are scattered amid a snow-filled woodland in Hokkaido, Japan. The majestic Mount Yotei looms over the horizon, its summit overlooking the clouds.

Flanked by a golf course and a short drive away from the ski town of Niseko, these houses offer a quiet respite for tourists and their owners alike.

Honestbee bought this house for US$1 million / Photo credit: Taiga Projects

But what many don’t know is that one of those properties, a spacious five-bedroom chalet, was purchased under the balance sheet of Honestbee, a prominent Singaporean ecommerce startup that burned through nearly US$100 million in 2018 alone and has laid off most of its staff. The company had been led by CEO Joel Sng until he was asked to leave earlier this year.

Bought at close to US$1 million, the Hokkaido property is just one instance of odd transactions and corporate governance practices that occurred even as Honestbee owed money to suppliers, creditors, and former employees, according to Tech in Asia’s interviews with multiple sources and a review of the company’s financial data.

A closer look / Photo credit: Taiga Projects

We have reached out to Sng multiple times for comment but didn’t receive a reply. Lay Ann Ong, who took over as Honestbee’s chief executive in July, declined to comment on specific transactions under his predecessor’s tenure, but said in an email statement that “investigations are underway.”

“Where there are opportunities to clawback any sums which the company is due, we will not hesitate to take the necessary steps for the benefit of all of Honestbee’s creditors,” he added.

Why purchase the house?

The company bought the chalet in 2015, a landmark moment in its history. That year, Honestbee raised a US$15 million series A round from prominent Silicon Valley investors.

The nature and reasons for the purchase were unclear. It’s unusual for a startup to have a property investment on its balance sheet as capital is precious and usually spent on assets that can directly boost its business.

Ex-CEO Joel Sng / Photo credit: Honestbee

What we know is that the transaction was logged as a property investment under its accounts. Any future cost of maintenance or renovations would be recognized as part of the company’s profit or loss statements, its financial report notes.

Million-dollar office

Selling his company to Honestbee

Honestbee’s ghost office

Honestbee’s cash crunch