Singapore-based online grocery startup RedMart today announced raising US$23 million in a Series B round led by gaming firm Garena, with participation from venture capital firm SoftBank Ventures, investment company Visionnaire Ventures, and Facebook Co-founder Eduardo Saverin.
For the record, Garena and Saverin have previously invested in RedMart. To date, RedMart has secured US$27 million in funding from prominent investors such as Toivo Annus, Co-founder, Skype; Jason Ackerman, CEO, FreshDirect; East Ventures; and Golden Gate Ventures.
Founded in March 2011, RedMart, started by Roger Egan, Vikram Rupani and Rajesh Lingappa, delivers groceries and household essentials seven days a week.
Going forward, the funds will be used to build operational capacity to support future growth and expand the company’s product offerings to include fresh food.
Keith Nilsson, Managing Partner, Visionnaire Ventures said, “Online grocery retail is a huge, untapped opportunity in Southeast Asia and we believe RedMart is uniquely positioned to capitalise on the inevitable movement towards purchasing groceries online.
UPDATE: In conversation with e27, Co-founder and CEO Egan shared that the 200-strong company has been generating a 20 per cent month-on-month growth in revenue.
He added, “We want to get Singapore right first,” explaining that plans to expand into new markets will just have to wait.
The firm intends to roll out the option of buying fresh foods off the website by Q4 2014. Egan stated that it will be a challenge logistically, especially since these perishable goods have to be kept at a consistent temperature and will need to be maintained well.