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The deal will accelerate RedMart’s expansion into new product categories and the enhancement of its service offering to customers by leveraging Lazada’s seller base and advanced technological resources

Lazada, Southeast Asia’s leading online shopping and selling platform, has agreed to acquire Singapore’s online grocery major RedMart, according to an official statement.

While the size of the deal is not officially disclosed, an earlier TechCrunch report said the deal value could be anywhere between US$30 and US$40 million.

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 the further enhancement of 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 post 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. 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,” said Roger Egan, Co-founder and CEO of RedMart.

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 from investors like Garena, LionRock Capital, Far East Ventures and Facebook Co-founder Eduardo Saverin.

Alibaba-backed Lazada Group operates Lazada, Southeast Asia’s leading online shopping and selling destination, with presence in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

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 consumers in six countries online.

The post Done deal: Alibaba-backed Lazada acquires online grocer RedMart appeared first on e27.

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