E-commerce platform Lazada has agreed to acquire Singapore-based grocery e-commerce company Redmart, enabling internet and telecommunications group SoftBank and internet company Garena to exit.
Lazada will pay “about $50m” for Redmart, according to the Wall Street Journal, which cited people familiar with the transaction. Reports a few days ago suggested the price would be between $30m and $40m.
Founded in 2011, Redmart operates an online platform that supplies fresh produce and frozen foods to Singaporean customers. It had raised about $55m in funding but had no luck when trying to secure $100m in equity capital earlier this year, forcing it to seek out buyers.
Redmart will continue to operate under its own brand post-acquisition, and the deal is expected to close by the end of 2016.
Garena invested $4.6m in Redmart in 2013 and led its $23m series B round the year after, investing alongside Softbank Capital, SoftBank’s corporate venturing unit, in addition to Visionnaire Ventures and private investor Eduardo Saverin
Garena, Softbank Ventures Korea, property developer Far East Organisation’s Far East Ventures subsidiary, Visionnaire Ventures and Saverin provided $26.7m for the company in an August 2015 bridge round.