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.
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.