Singapore: Online grocery co RedMart raising $100m investment

Visual of RedMart portal. January 2016.

Singapore-based online grocery company RedMart is reported to be in the advanced stage of discussions related to closing a $100 million Series C investment which will fund its pan-Asian expansion.

Reporting the development, TechCrunch cited two sources with knowledge of the deal who confirmed with the publication that the latest transaction was expected to be closed within Q1 2016. To date, RedMart has not issued any public comments on this development.

Incepted in November 2011 by the founding team of Vikram Lupani, Rajesh Lingappa and Roger Egan, the venture brings online and on-demand shopping to Singapore.

So far, RedMart has raised US$55.1 million from 19 investors. According to Crunchbase, as of 31 January 2016; investors include gaming unicorn Garena, SoftBank Ventures Korea, Visionnaire Ventures, and Facebook co­-founder Eduardo Saverin. August 2015 saw it raise a $26.7 million bridging round from existing investors.

Potential targets for expansion of business operations include Hong Kong and metropolitan Jakarta, the capital city of Indonesia. This aligns with Egan’s desire to pursue international expansion. However, the firm is interested in establishing its market leadership in Singapore, which is often described as a testbed market for developing and refining a business model.

Egan estimates Singapore’s grocery market to be worth US$16 billion per annum. Currently,, RedMart’s strategy is to maintain and operate its own logistics system and warehouses, which it believes grants it greater control of the customer service cycle and enables rapid expansion into other verticals further down the line.

Its Asian competitors, HonestBee and HappyFresh, have raised significant equity financing – though not as big as this reported round – and have adopted a model relying on third-party logistics and delivery services while expanding across Southeast Asian markets and establishing a presence in Taiwan and Hong Kong.

With this focus on emerging markets, RedMart may also want to look at the strategies of established players like Alibaba, Rakuten and Amazon, who have enjoyed varying degrees of success in the e-commerce space.

Also Read: 

Singapore maintains lead as B2C e-commerce hub in SE Asia: Research & Markets Report

Online grocery store RedMart launches Marketplace for independent sellers

Amazon’s massive investments in logistics worry analysts

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.