It’s confirmed: Alibaba-backed Lazada is buying Redmart

Photo credit: Redmart.

Less than a week after rumors broke, Southeast Asian ecommerce company Lazada announced today that it has agreed to acquire online grocery provider Redmart. The parties didn’t disclose the value of the deal but TechCrunch sources last week said it’s US$30 million to US$40 million.

The transaction is expected to be completed this quarter.

By teaming up, the duo benefits from each other’s operational infrastructure and extended customer network, they said.

Redmart will continue to operate independently.

A big face-off

Lazada is controlled by Jack Ma’s Alibaba, which in April took a commanding stake in the Rocket Internet-born startup for US$1 billion.

The deal brought the Chinese ecommerce giant to fertile ground that’s home to over 600 million consumers.

It’s not only Alibaba which is aiming to dominate this huge market, however.

Just today, a TechCrunch report said that Alibaba’s US rival, Amazon, is planning to enter Southeast Asia soon, quietly buying assets like refrigerated trucks and hiring staff in the region. Amazon, which supposedly also offered to acquire Redmart earlier this year, would make a foray into Singapore first and those refrigerated trucks suggest it will initially offer its AmazonFresh grocery service.

If the rumors about Amazon turn out to be true, a big face-off in Southeast Asia will happen soon.

See: The stage is set for the Amazon vs Alibaba battle in Southeast Asia