Launched back in October 2011, RedMart is a Singapore based online grocer that delivers everyday essentials, such as diapers, rice, soda, and bottled water to busy consumers. The company is backed by Singapore based Golden Gate Ventures, Toivo Annus (Skype Co-founder), Jason Ackerman (Co-founder and CEO of online grocer FreshDirect.com in US), Boon Ling Yee (Singaporean, former Commercial Director of Tesco China), as well as and Anne-Ev Juette-Enzmann (former Marketing Strategy Director at Tesco Thailand).
RedMart grows from S$15,000 to S$250,000 in monthly revenue, expand its selection to over 8,000 products.
Last year was a great year for RedMart. Cofounder and CEO Roger Egan shared with us that back in January 2012, the company did a modest S$15,000 in monthly revenue. Fast forward to today, RedMart is currently generating S$250,000 in monthly revenue, or a whopping S$3,000,000 in annual run rate revenue.
Due to the high growth rate, they are now moving its operations to a new 12,000 sq ft state-of-the-art fulfillment centre near Jurong Port Road. The new warehouse includes a large cool room to better maintain the freshness of its products in the hot, humid climate. The company also invested in the new facility to expand its selection to over 8,000 products. On top of that, RedMart is investing heavily into logistics and delivery technology to increase fulfillment efficiency as well as accuracy. The investment also allows for better coordination of its fleet of delivery vans, thus ensuring on time delivery.
“We were bursting out of our old warehouse and never imagined we’d grow out of it so quickly! We’ve learned a lot about supply chain and operations management in our first year and we are fortunate to have excellent Advisors, such as Jason Ackerman, Founder & CEO of FreshDirect.com (the largest online supermarket in the US), to guide us along the way. The new facility will allow us to scale up rapidly while maintaining a superior service quality”, said Vikram Rupani, Co-founder, COO & CFO.
RedMart acquires users through word of month, funding efforts have been “extremely positive”
When asked how the company acquires new users, Roger shared that the company relies a lot on organic growth via word of mouth, complemented by some online advertising. RedMart is currently fundraising and the response has been “extremely positive so far”. How positive? Roger shared that they will “likely be able to announce something in the next few months.”
RedMart allows customers to choose a two hour delivery window. Everyday before 10pm, you can expect to receive your groceries on the same day you place the order online. Delivery fee is waived for orders over S$75.
The company also has plans to expand internationally in 2014.