SINGAPORE: E-commerce company Lazada announced on Wednesday (Nov 2) that it has acquired Singapore e-grocer RedMart for an undisclosed sum.
Alibaba-backed Lazada said it expects the transaction to be completed in the fourth quarter of this year.
According to Singapore-headquartered Lazada, RedMart will be led by its current management and will “continue to operate independently” after the transaction.
The move comes on the heels of reports in Sep that Redmart – backed by Facebook billionaire co-founder Eduardo Saverin - is seeking a buyer as it faces intensifying market competition.
Lazada said in a statement on Wednesday that “both parties will benefit from each other’s cutting-edge technological and operational infrastructure, as well as an extended customer network”.
“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 co-founder and CEO of RedMart, Roger Egan.
“As part of our growth strategy, we are always looking for ways to serve our customers better by adding new product categories and improving our service offering. RedMart’s strong management team and their relentless focus on putting the customer first has resulted in customers loving them in Singapore,” said Maximilian Bittner, CEO of Lazada Group.