RedMart.com, a Singapore based online grocery service, recently raised USD 5.4 Mn in a Venture round funding. The round was oversubscribed and brings the total funding since inception to USD 10 Mn.
The team plans to use the raised funds to build out bleeding-edge fulfillment technology and infrastructure to accommodate the company’s rapid growth. Also, as per the release, the current round of funding is a precursor to a larger Series B round, for which the company has already started the process of raising and expects to close in the next 5 months.
The investment was led by facebook Co-founder, Eduardo Saverin. Other investors which participated in the round include Steve Melhuish and Jani Rautiainen (Property Guru Founders), Meng Weng Wong (Co-founder of incubator JFDI), Wee Teng Wen (founder of The Lo & Behold Group) and Lion Rock Capital (headed by Hari Kumar, founder of TPG Axon).
Founded in October 2011, RedMart.com is an initiative of Roger Egan and two entrepreneurs of Indian origin, Vikram Rupani & Rajesh Lingappa. The portal offers competitive prices on a wide range of groceries and household essentials with the convenience of online ordering and home delivery 7 days a week.
Currently, it is offering around 4000 products across categories such as Food Cupboard (which includes groceries, snacks, etc.), Beverages, Alcohol, Baby, health & beauty, Household and Petcare. The company has its own fleet of delivery vans.
The payment options include paypal, credit card or POP (pay over phone) with Visa / Master card. For the first timers, the free delivery is available at a spend of USD 49 while the regular customers must make a minimum order of USD 75 for the same.
“I believe that time-starved consumers will increasingly value convenience in purchasing their daily essentials. The logistics and technology platform the RedMart team is building extends far beyond selling groceries in Singapore. The founders’ ambition is boundless, their execution near flawless and I am excited to help them to realize their vision”, said Eduardo Saverin.
The company is backed by investors such as Forrest Li (CEO of Garena), Toivo Annus (Skype Co-founder), Boon Ling Yee (former commercial Director of TESCO China), Vinnie Lauria (Founding Partner at Golden Gate Ventures) and others.
Previously, the company has raised undisclosed amount of funding in three rounds including two seed rounds in December,2011 & March 2013 and Series A round in July 2013.
If talked about the online groceries segment in India, with increasing internet penetration and adoption of eCommerce in the country, consumers seem quite comfortable in purchasing groceries online.
The players currently dominating the Indian market include AaramShop.com, EkStop.com, BigBasket.com, AtMyDoorSteps.com, ZopNow.com, Omart.in, LocalBanya.com, RationHut.com, SeaToHome.com among the others.
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