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TFG Acquires Quench in Big Push Towards E-Commerce

December 6, 2021

As part of efforts aimed at becoming South Africa’s next e-commerce powerhouse, the labs division of TFG has acquired digital shopping platform and last-mile delivery provider Quench.

Speaking on the development Claude Hanan, Co-Head of TFGLabs said that “With this acquisition we gain access to fast, reliable delivery across South Africa, whilst achieving superior delivery unit economics. With 75% of orders currently fulfilled from stores, Quench’s network of micro-carriers will become an essential enabler for our ‘ship-from-store’ strategy.”

He adds that “All international market data shows that delivery price, reliability and speed is highly correlated to e-commerce penetration and purchase frequency.”

TFG, through its Labs division, has acquired digital shopping platform and last-mile delivery provider Quench. This latest acquisition forms part of TFGLabs’ ambition into becoming one of South Africa’s next e-commerce powerhouses.

According to TFG, the Quench acquisition will enhance the company’s existing capabilities across the fulfilment network through proprietary software and engineering, bringing a scientific approach to planning, least-cost routing and asset utilisation. Additionally, TFG plans to leverage the acquisition to begin improving overall stock turn and store density.

Hanan goes on to stress that “For now it’s business-as-usual at Quench. We will continue to service Quench’s existing partners and customers, and in fact, immediately invest in improving our offering and service to both. Our team has extensive experience across last-mile delivery and technology platforms, and together with Werner, Liam and the Quench team, we will build on the existing foundation, and continue to enhance the offering”.

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South African Delivery Startup, Quench, Acquired By The Foschini Group

December 3, 2021

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.

Quench delivery acquired — *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.

“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.”

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

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