RedMart, online grocery startup in Singapore has secured $26.7 million in the pre-series C or bridge round of funding. The round was led by prevailing investors Garena, SoftBank Ventures Korea, Visionnaire Ventures, Facebook cofounder and angel investor Eduardo Saverin along with new investor Far East Ventures. This funding amount increases the total funding amount to $54 million.
Founded in 2011 by Rajesh Lingappa, Vikram Rupani and Roger Egan, RedMart is one of the leading Singapore’s online grocery market place that caters to busy working people. It offers a wide range of products from household items to groceries. Unlike other e-commerce startups, the company owns its own logistics and warehouse chain which serve as a strength to venture into other products. “Starting with groceries gives us a big advantage when it comes to being the store for everything. It’s easier for us to move into other categories, rather than an e-commerce firm move into groceries,” said Egan.
Today along with the funding announcement, it hired Colin Bryar, a former Amazon vice president, as the company’s chief operating officer to look after engineering, marketing and operations. The position was previously headed by Vikram Rupani, who has now taken over as the president. “Colin is an experienced leader who has consistently used technology to innovate on behalf of customers and has a strong track record for driving operational excellence. We continue to hire top talent with deep experience across technology, retail and operations to our leadership team and throughout the company,” said Egan.
With the other investors, the new investor has participated in this round who is Far East Ventures, a corporate venture arm of Far East Organization. Far East has been interested in the startups on the recent days and serve as limited partner in a number of funds and investing directly in many companies. “We are 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,” said Egan.
With the freshly injected funds, RedMart plans to launch an on-demand marketplace and spend in its dry and fresh private label offering. Though much details are not available on it, it is believed to be a much bigger business than its direct grocery sales and would be a strategy to compete against another startup Honestbee. The company also has plans to expand geographically into Jakarta, Bangkok, Hong Kong, Kuala Lumpur, Ho Chi Minh City, Manila and Taipei.