While the size of the deal is not officially disclosed, TechCrunch said the deal value could be anywhere between US$30 and US$40 million.
When contacted for details, a RedMart spokesperson told e27: “As you know, the deal has just been announced and parties are still discussing plans. We are unable to provide further operational details beyond the contents of the press release until due course.”
As per another TechCrunch report, Amazon had also made an offer to acquire Redmart earlier this year, but was rejected as it was deemed too low.
The transaction is expected to be completed by Q4, 2016.
The partnership will allow Lazada to benefit from RedMart’s strong fulfilment capabilities in Singapore. Furthermore, it will accelerate RedMart’s expansion into new product categories and help enhance its service offering to customers by leveraging Lazada’s seller base, ecosystem of third-party service providers, and advanced technological resources.
Led by its current management, RedMart will continue to operate independently after the transaction.
“This partnership will help us to increase the scale at which we are able to deliver our mission to save our customers time and money for the important things in life,” said Roger Egan, Co-founder and CEO of RedMart. “As a result of the complexity of our core business, online groceries, we have built a market-leading logistics infrastructure. Through this partnership, we can further scale our logistics and tech platform to extend our product assortment and to offer an even more convenient service for our customers in Singapore. The capital flexibility provided through this deal will go towards innovating to delight our customers.”
Founded in August 2011 by Roger Egan, Vikram Rupani and Rajesh Lingappa, RedMart is Singapore’s leading online supermarket, offering a wide selection of fresh food, household essentials and premium speciality products. It has a direct retail offering and a marketplace platform for independent brands to sell on our state-of-the-art website and mobile application.
The firm has raised a total of US$55 million in funding till date that includes a US$26.7 million from Garena, SoftBank Ventures Korea, Visionnaire Ventures and Facebook Co-founder Eduardo Saverin.
Launched in March 2012, Lazada features a wide product offering in categories ranging from consumer electronics to household goods, toys, fashion and sports equipment. Lazada offers brands and sellers a marketplace solution and an ecosystem of partners providing direct access to about 560 million online consumers in six countries.
In April this year, Alibaba Group entered into an agreement to acquire a controlling stake in Lazada. The transaction consisted of an investment of approximately US$500 million in newly issued equity capital of Lazada, and acquisition of shares from certain Lazada shareholders, for a total investment by Alibaba of approximately US$1 billion.