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Hello reader,
The new year is firmly within sight but the Covid-19 pandemic continues to have a seismic impact on our lives. Not only has it caused devastation across the world but it has also drastically changed the way we socialize, interact, and work. We pay through QR codes, work using either Zoom, Slack, or Google Meet (choose your poison wisely), and interact from a safe distance, wearing face masks.
Three years ago, no one would have believed masks would become a fashion accessory or the scale of the digital transformation societies have undergone to keep the global economy ticking. However, some might argue that the pandemic merely accelerated trends that were already taking root. Nonetheless, it’s somewhat assuring that we can count on human ingenuity to prepare and adapt to our ever-changing surroundings.
It’s that very ingenuity that gave birth to RedMart – one of Singapore’s first online supermarkets – over a decade ago. Despite a few hiccups in recent years, RedMart appears to now be making the most of the windfall in sales brought on by the pandemic. Online grocery is having a moment in Southeast Asia and RedMart is yearning for the spotlight.
Today we look at,
- How RedMart revived its revenue during the pandemic
- Seeds Capital backing a Singapore-based smart mobility startup
- Other newsy highlights such as India’s youngest unicorn buying a denim brand and China’s crypto traders keeping the faith even though exchanges sever ties
Also, if you are an entrepreneur looking for funding, fill in this form to get your company featured on our list of fundraising startups.
Premium summary
Red-hot revival
Image credit: Timmy Loen
Since Lazada acquired RedMart in late 2016, not everything has gone to plan. Despite being integrated into Lazada’s app in Singapore in 2019, RedMart’s revenue stagnated, growing by only 1.4% in the financial year ended (FYE) 2020. The Singapore-based company, which celebrated its 10-year anniversary in October, is yet to turn a profit.
However, the pandemic’s marked influence on consumers’ buying behavior has provided a lifeline to RedMart, with its impressive FYE March 2021 results paving the path toward stronger growth and, possibly, profitability.
- Instant impact: RedMart got an immediate boost from the pandemic in June 2020, when it reported that its sales climbed 4x after the city-state introduced strict circuit-breaker restrictions in early April 2020.
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Back to basics: RedMart’s approach is relatively asset light. It has only one fulfillment center in Singapore, which makes it easier to maintain and manage its inventory. Its improved figures in FYE 2021 were mainly due to a 50% rise in retail revenue from the sale of groceries through its online platforms.
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