Lazada in talks to buy Redmart for rumored $30m to $40m
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Southeast Asia ecommerce portal Lazada is reportedly in talks to buy online grocery provider Redmart. The acquisition amount is said to be around US$30 million to US$40 million, which if true, is in the low range given it raised US$26.7 million last year.
Redmart had apparently held unsuccessful talks with supermarket chain NTUC and Singapore sovereign wealth fund GIC. It also received a “lowball” offer from Amazon.
The startup had been in trouble for some time. While its revenue grew, its expenses increased at an even faster clip.
Lazada is controlled by Chinese online shopping Alibaba, which in April took a commanding stake in the Rocket Internet-born startup for US$1 billion.
Questions & Answers
Q.What is the reported acquisition amount for Redmart, and how does this compare to its previous fundraising?
What is the reported acquisition amount for Redmart, and how does this compare to its previous fundraising?
The acquisition is reportedly between US$30 million and US$40 million. This figure is considered to be on the low side, given that Redmart successfully raised US$26.7 million just last year.
Q.Which other companies had previously held discussions with Redmart regarding a potential acquisition or investment?
Which other companies had previously held discussions with Redmart regarding a potential acquisition or investment?
Redmart had reportedly engaged in unsuccessful talks with the supermarket chain NTUC and Singapore's sovereign wealth fund GIC. It also received an offer from Amazon, which was described as a "lowball" bid.
Q.What issues was Redmart facing that made it an acquisition target?
What issues was Redmart facing that made it an acquisition target?
The startup had been experiencing difficulties for some time. Although its revenue was growing, its expenses were increasing at a significantly faster rate, indicating financial trouble.
Q.Who controls Lazada, the company reportedly in talks to buy Redmart?
Who controls Lazada, the company reportedly in talks to buy Redmart?
Lazada is under the control of the Chinese online shopping giant Alibaba. Alibaba acquired a commanding stake in the Rocket Internet-born startup earlier this year, in April, for a sum of US$1 billion.
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