Singapore’s RedMart Bags Huge Series A Funding to Expand Online Grocery Business

Grocery shopping site Redmart has secured series A funding to grow its Singapore-based business. The company says that the major new round amounts to a total of $4.6 million in investment in the startup site so far after several inputs of seed funding since it launched in January 2012. Today’s investment is worth nearly $3.5 million. Redmart’s series A was funded by Garena, a fellow Singaporean web company.

RedMart CEO and co-founder Roger Egan says, according to TheNextWeb, that the food shopping and delivery service has grown to annual sales revenue of $5 million, which is up from the $2.5 million we saw in December 2012.

Egan also claims to have a very high customer retention rate behind that stellar growth, with 75 percent of its online shoppers returning, and customers ordering groceries about 1.5 times a month on average. There are 11,000 registered users of the site, which only operates in Singapore at present.

Expansion is in the cards, Egan points out, with RedMart planning to expand to unspecified other cities in Southeast Asia in 2014. But Singapore, where Redmart added to its team and warehouses earlier this year, is big enough for now since the island nation’s grocery market is worth about $5.2 billion, says Egan.

Redmart bagged funding from Skype co-founder Toivo Annus when it launched at the start of 2012, and later also got funds from Golden Gate Ventures and from East Ventures a few months ago.

(Source: TheNextWeb)

Disclosure: East Ventures is also an investor in TechinAsia. See our ethics page for more information.

(Editing by Anh-Minh Do)