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 say it’s US$30 million to US$40 million.
The transaction is expected to be completed within this quarter, the companies said in a statement.
By teaming up, the companies will benefit from each other’s operational infrastructure and extended customer network, they said.
Redmart will continue to operate independently.
A big face-off
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 and hiring staff in the region.
Amazon, which supposedly also offered to acquire Redmart, would make a foray into Singapore first, the report added.
Amazon made a bid for Redmart earlier this year but the offer was rejected for being too low, said TechCrunch.
If the rumors about Amazon turn out to be true, a big face-off in Southeast Asia will happen soon.