Self-styled “superapp” Grab has completed its acquisition of Malaysia’s supermarket chain Jaya Grocer to enhance its on-demand grocery delivery service.
In a statement, the company also announced the rollout of GrabPay and GrabRewards across all Jaya Grocer physical retail stores to expand the usage of Grab’s cashless wallet.
The Nasdaq-listed company first announced the share purchase agreement to acquire all of Jaya Grocer's ordinary shares and 75% of its preference shares in a filing with the US Securities and Exchange Commission on Dec 13. The financial details of the transaction were not disclosed.
Grab said the acquisition is EBITDA accretive to its business, highlighting that Jaya Grocer has seen continued strong growth with revenues growing at double-digit rates y-o-y from 2018 to 2020.
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, the company said.
By combining the two companies’ capabilities, Grab is able to deliver Jaya Grocer’s wide selection of fresh produce and grocery products to more homes faster, said Grab CEO and co-founder Anthony Tan.
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“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 Tan.
Meanwhile, Jaya Grocer founder Teng Yew Huat said the acquisition provides the supermarket chain with an opportunity to grow the market for online grocery services in Malaysia.
Jaya Grocer has 40 stores across Peninsular Malaysia, with the majority being located in the Klang Valley near Kuala Lumpur.
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Shares in Grab closed 20 US cents lower or 3.5% down at US$5.51 on Jan 28 (US time).
Photo: Grab
