Singapore — Grab, Southeast Asia’s leading super-app, announced the acquisition of a majority stake in Jaya Grocer, a leading mass-premium supermarket chain in Malaysia. The two companies plan on bringing the convenience of on-demand grocery delivery to more customers in Malaysia.
With the partnership, Jaya Grocer will now be part of Grab’s ecosystem, allowing the grocery chain to accept GrabPay and GrabRewards across all its physical retail stores, expanding usage of Grab’s popular cashless wallet.
Grab disclosed that the acquisition is timely as there is an accelerated growth in on-demand delivery services due to the pandemic causing consumers to opt for online grocery shopping. With a forecast that online grocery in Southeast Asia could grow to US$50B in gross merchandise value, equal to the size of the entire e-commerce market today, the technology company sees the acquisition as an advance step to get ahead and secure a foothold in the industry post-pandemic.
Online grocery demand remained elevated even as restrictions eased. GrabMart, Grab’s on-demand grocery and speciality 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.
Anthony Tan, Group CEO and co-founder at Grab, said that it is the company’s vision to make on-demand groceries more accessible for everyone.
“Jaya Grocer is known for its 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,” Tan said.
Meanwhile, Teng Yew Huat, founder of Jaya Grocer, shared his thoughts on the partnership, saying, “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.”
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.