Woolworths venture capital arm W23 backs Marketplacer

Woolworths has made an undisclosed (said to be multi-million dollar) investment in Australian e-commerce startup Marketplacer as the retailer looks to launch its own online marketplace offering.

Woolworths’ venture capital arm, W23, announced the move, which will see the supermarket take a minority stake in Marketplacer alongside the likes of Salesforce, Endeavour and Acorn Capital.

Marketplacer Co-Founder and Executive Chairman, Jason Wyatt, comments: “As we extend our offering globally, strategic and mutually beneficial partnerships are key to our own growth trajectory.”

“To that end, we're thrilled to count iconic retailer Woolworths as both a Marketplacer client and investor.”

“This deeply collaborative partnership will see our team and technology drive a monumental digital transformation moment for the brand, while also supporting our own ability to expand, simplifying growth for businesses the world over.”

Woolworths Director of New Business, Faye Ilhan, says: “As more of our customers start their shopping journey digitally and buy groceries online, we know their expectations will only continue to rise.”

“Together with Marketplacer, we're building a marketplace for Woolworths.com.au, which will help extend our range of everyday needs products for online customers.”

“As well as offering more choice to the millions of customers who visit our website each week, our marketplace will provide existing and new suppliers with fresh opportunities to partner with us to grow their business.”

“This will be a highly curated marketplace focused on range extension in our core everyday needs categories and we look forward to exploring opportunities with supply partners.”

Woolworths.com.au will pilot an extended everyday needs range with BIG W later this year.

This will help it gauge customer demand for an expanded range while allowing it to test delivery logistics with another retailer in the group.