Lazada, a Southeast Asian e-commerce platform that Alibaba Group Holding Ltd. acquired control for US$1 billion in April, is acquiring Singapore-based online grocery shopping site RedMart for a reported price of between US$30 million to US$40 million.
The deal, which is undisclosed and expected to be completed before year-end, will allow Lazada to benefit from RedMart’s fulfillment capabilities in Singapore.
"This partnership will help us to increase the scale at which we are able to deliver our mission to save our customers time and money for the important things in life," said co-founder of RedMart, Roger Egan.
Due to the complexity of the online grocery business, RedMart has built a leading logistics infrastructure. The deal will scale its logistics and tech platform to extend to product assortment and offer more convenient service for customers in Singapore, he added.
RedMart will continue to operate as an independent entity from Lazada, the company said.