Grab Completes Acquisition Of Stake In Jaya Grocer
Thursday, February 3rd, 2022 | 507 Views
Grab Holdings Limited (“Grab”) (NASDAQ: Grab), Southeast Asia’s leading superapp, today announced that it has completed its acquisition of a majority stake in Jaya Grocer Holdings Sdn Bhd (“Jaya Grocer”), a leading mass-premium supermarket chain in Malaysia.
The two companies plan to work together to bring the convenience of on-demand grocery delivery to more consumers in Malaysia.
Grab and Jaya Grocer also announced the rollout of GrabPay and GrabRewards across all Jaya Grocer physical retail stores, expanding usage of Grab’s popular cashless wallet. The acquisition comes at a time of accelerated growth in on-demand grocery delivery services. Prolonged movement restrictions and consumer concerns about safety and hygiene have led to a boom in the adoption of online grocery shopping. 64% of Southeast Asia’s internet users purchased groceries online at least once during the pandemic, yet online grocery transactions only accounted for approximately 2% of the total grocery spend.(1) It is estimated that online grocery in Southeast Asia could grow to US$50B in gross merchandise value – the size of the entire e-commerce market today – at a 10% penetration rate similar to advanced markets.(2)
Online grocery demand remained elevated even as restrictions eased. GrabMart, Grab’s on-demand grocery and specialty retail marketplace, recorded three straight quarters of growth in the first three quarters of 2021. Jaya Grocer, a trusted and well-loved consumer brand in Malaysia, also saw continued strong growth, with revenues growing at double-digit rates year-on-year from 2018 to 2020, and is EBITDA accretive to Grab’s business.
“It is our vision to make on-demand groceries more accessible for everyone. Jaya Grocer is known for their wide selection of good-quality fresh produce and grocery products. By combining our extensive on-demand delivery fleet and capabilities, with Jaya Grocer’s strong retail presence and supplier network, we can have these quality products delivered to more homes even faster. We believe this partnership will further accelerate the growth of our groceries delivery business, and we are excited by the immense opportunity ahead of us,” said Anthony Tan, Group CEO and Co-Founder, Grab.
“I have built Jaya Grocer from the ground up – from our first store in Klang Valley to over 40 stores today. Grab’s strong track record and ability to execute in a hyperlocal way gives me confidence that I have found the right partner to take Jaya Grocer to new heights. This acquisition provides us with an amazing opportunity to not only grow as a company, but also grow the market for online grocery services in Malaysia,” said Teng Yew Huat, Founder, Jaya Grocer.
Grab continues to double down on on-demand grocery delivery. The company is scaling its GrabMart marketplace by partnering with retailers to provide consumers with greater product variety and convenience. The acquisition enables Grab to bring more Jaya Grocer retail stores onto its marketplace, while also leveraging Jaya Grocer’s large supplier network to further expand its GrabSupermarket product line at lower costs. This in turn contributes to improved unit economics and overall affordability of grocery delivery.
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