RedMart, a Singapore based online grocery service has closed a $26.7 million round in preparation for an upcoming Series C which will be used to expand across Southeast Asia.
The round was led by existing investors Garena, SoftBank Ventures Korea, Visionnaire Ventures, and Facebook co-founder Eduardo Saverin, with participation from new investors named Far East Ventures..
This freshly raised capital has brought the total amount of investment raised by the company to over $50 million.
Commenting on the investment, RedMart CEO and Co-founder Roger Egan said, “We’re planning a much larger Series C round later this year, this bridge round gives us plenty of runway and capital for the current initiatives, such as our grocery marketplace, and building out an on-demand marketplace.”
No further information has been revealed by the company on the deal yet.
Nevertheless, in general, Egan also maintained: “The vision is to go into other product categories and provide near instant delivery, and we’re building towards international expansion,” Egan added. “We haven’t expanded yet because groceries is a difficult category. [U.S.-based startup] Webvan, for example, didn’t understand how to make money, and grew too quickly. A lot of that team went to Amazon Fresh, and stayed in Seattle for over four years and only recently have they been expanding. We’ll be able to expand faster now that we’ve spent four and a half years learning this business.”
According to Egan, the fact that RedMart owns its own logistics and warehouse chain, gives the company a position of strength when it comes to venturing into other product categories, reports Techcrunch. Will this become a threat to local players in other countries as well?