Alibaba-backed Lazada Group acquires RedMart for undisclosed sum
By Digital News Asia November 3, 2016
- RedMart will continue to operate independently post the transaction
- Lazada to benefit from RedMart’s fulfilment capabilities in Singapore
LAZADA, a Southeast Asian online shopping and selling platform, and RedMart, a Singaporean e-grocer, on Nov 2, announced an agreement in which Lazada will acquire RedMart. The amount was not disclosed.
Led by its current management, RedMart will continue to operate independently post the transaction.
RedMart’s fulfilment and technology platform gives customers access to the grocery selection in Singapore – from fresh produce to frozen foods – available for delivery quickly, within chosen two-hour delivery windows.
While the acquisition will allow Lazada to benefit from RedMart’s strong fulfilment capabilities in Singapore both parties expect to benefit from each other’s technological and operational infrastructure, as well as an extended customer network.
Furthermore, it will accelerate RedMart’s expansion into new product categories and the further enhancement of its service offering to customers by leveraging on Lazada’s seller base, ecosystem of third-party service providers and advanced technological resources.
“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,” said RedMart co-founder and CEO Roger Egan.
“As part of our growth strategy, we are always looking for ways to serve our customers better by adding new product categories and improving our service offering. RedMart’s strong management team and their relentless focus on putting the customer first has resulted in customers loving them in Singapore,” Lazada Group CEO Maximilian Bittner (pic, above) added.
The transaction is expected to be completed in calendar Q4 2016.
Goldman Sachs (Asia) LLC acted as exclusive financial advisor to Lazada Group and Credit Suisse (Singapore) Limited as exclusive financial advisor to RedMart.