RedMart.com, a Singapore-based online grocer, has completed its transfer to a 12,000 sq ft fulfillment center — about the size of 4 tennis courts — which can house the company’s selection of products and includes a cool room to maintain the quality of fresh goods. The company will have a product selection of 8,000 by May.
The startup also announced today that it will invest in logistics and delivery technology to increase fulfillment efficiency and accuracy as well as better coordinate its fleet of delivery vans. At this point, RedMart lets users select a two-hour delivery window, same-day delivery up to 10PM, and free delivery for orders above SGD75.
“We were bursting out of our old warehouse and never imagined we’d grow out of it so quickly,” said Vikram Rupani, co-founder, COO and CFO of RedMart. On track to break even this year, its monthly revenue for January 2013 was approximately USD 250K, up from USD 15K in the same time last year — representing almost 16x growth.
A new logistics operations manager has been hired to manage the new warehouse facility — four times as large as their former one — joining the company’s staff strength of 42, which grew from 4 when it started. Last year, it scored a coup by hiring Todd Curie, the former marketing director at eBay, who joined the company as its VP for marketing.
Launched in October 2011 by two former investment bankers, RedMart has gone on to secure funding from angel investors like Toivo Annus, Skype co-founder, Jason Ackerman, co-founder of US online grocer FreshDirect.com, Boon Ling Yee, former commercial director of Tesco China, and Anne-Ev Juette-Enzmann, former marketing strategy director at Tesco Thailand.
It also raised funds from Golden Gate Ventures, a new early stage investment firm supported by the NRF’s Technology Incubator Scheme. Golden Gate has invested 6-digit sums (USD) in TradeGecko and Coda Payments.
So far, RedMart’s investors have pumped in about SGD 1.6M (USD 1.29M) in total. The company plans to focus on Singapore for now, but hopes to expand to its next Southeast Asian city by 2014.