Society Pass (SoPa), a Southeast Asian customer loyalty and analytics platform, announced that it has acquired local online grocery delivery service Pushkart.ph.
As a result of the acquisition, Pushkart.ph becomes a wholly owned subsidiary of SoPa and kicks off its expansion into the Philippine market.
The details of the financial transaction were not disclosed.
Leveraging on SoPa’s capital, Pushkart.ph will focus on increasing on-demand grocery shopping services to more consumers and more retailers initially to Metro Manila and then to all of the Philippines, while empowering grocery stores and restaurants to transform business models and further tap into online markets.
The announcement comes at a time of accelerated rapid growth for delivery services in the Philippines, with the Internet economy expected to increase 24% from $17 billion in 2021 to $40 billion in 2025.
Pushkart.ph is one of the country’s fastest growing e-commerce platforms, with a customer base of over 125,000 registered users, over 35,000 social media followers, and more than 20,000 mobile app downloads.
“We are excited to combine the robust technology, retail and operational prowess of a high-performance brand like Pushkart.ph with our brand building experience. As the Philippine consumer faces tremendous challenges with traditional brick and mortar shopping due to a plethora of hurdles including excessive wait times in traffic/public transport, SoPa aims to provide viable solutions by providing impetus to the growing e-commerce industry in the country,” said SoPa founder, chairman, and CEO Dennis Nguyen.
“Given the immense potential of the Philippine market, we are very excited about the opportunities that this acquisition will bring in the upcoming months. In addition, as the Philippines is a cornerstone of SoPa’s VIP (Vietnam, Indonesia, and the Philippines) acquisition strategy, I expect to acquire a number of market leading companies in the Philippines over the next few months.”
The acquisition is in line with SoPa’s core vertical focus and facilitates proliferation of its growth in the Philippines while increasing consumer opportunities and delivering enhanced value.
The company said the move will also help tap the increasing digital penetration in the online grocery shopping space in the Philippines market.
Michael Lim, CEO of Pushkart.ph, said: “We are very excited to announce our acquisition by Society Pass, this partnership provides us the opportunity to not only grow our presence in the Philippines but further our lead in the grocery delivery business. We are excited to join the larger SoPa ecosystem which will enable us to harness its integrated marketing and technology proposition while also strengthening our collective senior management resources.
“We foresee that this will lead to immediate returns in terms of cost optimization and increased revenue generation. With the capital provided by SoPa, Pushkart.ph will now be empowered to provide enhanced end-to-end solutions to our customers and ensure an amplified market presence.”
SoPa said it aims to expand Pushkart.ph’s technology offering, increasing registered users to more than double to over 300,000 and driving app downloads to over 150,000 in 2022.
Philippine consumers will be able to use Pushkart.ph app across 19 cities in Metro Manila with a guaranteed next-day delivery service.
