Singapore’s RedMart Is Elevating $100M To Broaden Its On-line Grocery Service In Asia
Singapore-based mostly on-line grocery firm RedMart is near elevating an enormous $one hundred million Collection C spherical to increase its service throughout Asia. Two sources with information of the deal confirmed to TechCrunch that the brand new funding is predicted to shut within the subsequent one or two months.
RedMart didn’t reply to emails from TechCrunch in search of remark.
The corporate was based in November 2011 to convey on-line and on-demand purchasing to Singapore. Up to now, RedMart has raised over $50 million from buyers like Garena, SoftBank Ventures Korea, Visionnaire Ventures, and Fb co-founder Eduardo Saverin, with its most up-to-date increase a $26.7 million bridge spherical in August of final yr. Given the shortage of Collection C funds in Southeast Asia, this new spherical might nicely embrace institutional and strategic buyers, however we haven’t been capable of determine particular members at this level.
The brand new financing will go in the direction of increasing the corporate’s service into new markets in Asia, with Hong Kong more likely to be the primary port of name, probably adopted by Jakarta, Indonesia. RedMart CEO Roger Egan has been open about the corporate’s want to develop abroad, however he and his group are adamant that the corporate should first lockdown its enterprise mannequin in Singapore — a rustic of simply 5 million individuals however a grocery market that Egan estimates to be value $sixteen billion yearly.
RedMart’s technique is to function its personal logistics and warehouses, a mannequin that it believes provides it higher management of the customer support cycle and can allow it to shortly enterprise into different verticals sooner or later. (RedMart did additionally launch an on-demand enterprise, and a market final yr.) Whereas it was arguably the primary to pioneer on-line grocery gross sales in Southeast Asia, the panorama is extra aggressive at present with enterprise capital-backed startups HonestBee ($15 million) and HappyFresh ($12 million) amongst a rising pack of rivals. RedMart has honed its mannequin in Singapore over the previous 4 years, however these two yr-previous rivals have taken a unique route, shortly increasing throughout Southeast Asia, and to Taiwan and Hong Kong, with a extra scalable mannequin that includes third-celebration logistics and supply providers.
Now it appears it’ll quickly be time for RedMart to step outdoors of Singapore and are available into nearer contact with these youthful rivals and put its enterprise mannequin to the check outdoors in additional historically rising markets.