TFG, better known as The Foschini Group, has acquired Quench, an ecommerce and last-mile delivery service, through its Labs section. The acquisition’s value has not been revealed.
“It forms part of TFGLabs’ ambition to become South Africa’s next e-commerce powerhouse by attracting not only the best in tech talent but e-commerce capabilities, too,” TFG said in a statement.
TFGLabs head Claude Hannan
Why The Acquisition
TFGLabs’ latest acquisition is part of the company’s plan to become South Africa’s next e-commerce behemoth.
Read also World Food Day: Time for global leaders to invest in Africa’s agriculture
“With this acquisition, we gain access to fast, reliable delivery across South Africa, while achieving superior delivery unit economics,” said TFGLabs head Claude Hannan.
“Quench’s network of micro-carriers will become an essential enabler for our ‘ship-from-store’ strategy. All international market data shows that delivery price, reliability and speed is highly correlated to e-commerce penetration and purchase frequency,” Hannan said.
Foschini, Markham, @home, and Totalsports are among TFG’s brands.
TFG’s store outlets currently fulfill about three-quarters of its orders.
TFG claims that the transaction will improve its fulfillment capabilities by providing “proprietary software and engineering, as well as a scientific approach to planning, least-cost routing, and asset utilization.”
Read also Tax Machines For Businesses In Kenya Get New January 15 Deadline
TFG also intends to use the acquisition to tactically enhance total stock turn and store density, according to the company’s statement.
Quench’s existing partners and customers will continue to be serviced by TFG. Woolworths and Dis-Chem, as well as a slew of other smaller businesses, are among them, according to Quench’s website.
Quench, which launched in 2016, received funding from Imvelo Ventures, a venture capital business created by Capitec Bank and Empowerment Capital Investment Partners, earlier this year.
Quench delivery acquired Quench delivery acquired
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer