RedMart Hong Kong launch tipped
A $100 million investment aimed at funding pan-Asian expansion is on the cards for Singapore’s online grocer RedMart.
The funds are most likely to be used to power an expansion of the concept into Hong Kong and Jakarta according to unconfirmed reports.
Discussions involving the Series C investment are said to be at an advanced stage, reports TechCrunch, citing two sources. While closure is expected in this first quarter, the grocery company has not issued any public comment on the development.
Launched in late 2011 by Vikram Lupani, Rajesh Lingappa and Roger Egan, the venture introduced online and on-demand shopping in Singapore. So far, the company has raised $55.1 million from 19 investors. These include, according to Crunchbase, gaming company Garena, SoftBank Ventures Korea, Visionnaire Ventures and Facebook co-founder Eduardo Saverin.
In August, RedMart raised a $26.7 million bridging round from its investors.
Potential targets for RedMart’s expansion include Hong Kong and Jakarta, reports DealStreetAsia.
However, the firm also wants to establish its market leadership in Singapore, where Egan estimates the grocery market to be worth $16 billion a year. The company’s strategy is to maintain its own logistics system and warehouses so as to have greater control of the customer service cycle and enable rapid expansion later into other verticals.
RedMart’s Asian competitors, HonestBee and HappyFresh, have raised significant equity financing and have adopted a model relying on third-party logistics and delivery services while expanding across South-east Asia and establishing a presence in Hong Kong and Taiwan, says DealStreetAsia.