- Rewardle (RXH) acquires collapsed eCommerce grocery retailer YourGrocer for $3000
- Through the acquisition, Rewardle will take on YourGrocer’s assets, valued at $301,000, along with $218,000 worth of liabilities and ongoing operational obligations
- Though YourGrocer ceased operations in late 2022, Rewardle says the eCommerce grocer’s assets and partnerships align with RXH’s growth strategy
- The acquisition will be funded through Rewardle’s operating cashflow and is not expected to be material
- Rewardle shares are up 5.56 per cent to 1.9 cents at 1:58 pm AEST
Rewardle (RXH) has acquired collapsed eCommerce grocery retailer YourGrocer for $3000.
Through the acquisition, Rewardle will take on YourGrocer’s assets, valued at $301,000, along with $218,000 worth of liabilities and ongoing operational obligations.
YourGrocer is a Melbourne-based eCommerce grocery that once enabled customers in Melbourne to order from a marketplace of independent local grocers, butchers, and fishmongers, delivered in a single package to a customer’s doorstep.
The company ceased operations and began the wind-up of its business in December 2022 after facing a series of “operational and funding challenges”.
Despite the end of YourGrocer’s operations, Rewardle said the assets and ongoing operating obligations of the grocer aligned with RXH’s growth strategy — in particular, the development of its strategic partnership with meal kit delivery service Pepper Leaf.
“Groceries, points, and rewards are a proven winner with Aussie consumers,” Rewardle Founder and Executive Chairman Ruwan Weerasooriya said.
“We believe that the combination of Rewardle and YourGrocer can create an innovative, local community-powered grocery service.”
Mr Weerasooria said Rewardle had “huge respect” for what the YourGrocer team achieved.
“Over the past decade, they built a beloved service and brand that brought together an amazing community of customers, employees, producers, and investors,” he said.
“We’re excited about the opportunity to build on their work and carry on the mission of enabling local merchants to connect and transact with their local community.”
The acquisition will be funded through RXH’s operating cash flow. Rewardle told investors the costs associated with the transaction were not expected to be material.
Rewardle shares were up 5.56 per cent to 1.9 cents at 1:58 pm AEST.