Alibaba’s Southeast Asian subsidiary Lazada has confirmed it will acquire Singapore e-grocerRedMart.

Indicated last month, the acquisition will allow Lazada to benefit from RedMart’s order fulfilment capabilities in Singapore and also accelerate RedMart’s expansion into new product categories.

“Through this partnership, we can further scale our logistics and tech platform to extend our product assortment and to offer an even more convenient service for our customers in Singapore,” says RedMart co-founder/CEO Roger Egan.

Lazada Group CEO Maximilian Bittner says RedMart’s strong management team and “relentless focus” on putting the customer first has resulted in customers loving the service.

While the value of the deal has not been disclosed, earlier reports have said it would be between $30 and $40 million.

RedMart will continue to be led by its present management and will work independently of Lazada. The transaction is expected to be completed before the end of the year, with Goldman Sachs acting as financial advisor to Lazada Group while Credit Suisse advises RedMart.