South African fashion and homeware retailer TFG has agreed to purchase on-demand online shopping platform and last-mile delivery provider Quench.
The addition is intended to allow TFG access to proprietary software and engineering capabilities and enhance its rapid delivery fulfilments across South Africa.
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Quench will join TFG’s portfolio of brands, which includes Foschini, Markham, @home and Totalsports. TFG is also known as The Foschini Group.
Through the acquisition, TFG aims to strengthen its presence as an omnichannel retailer and drive its e-commerce business.
The financial details of the transaction have not been disclosed.
The deal is being carried out through the retailer’s Labs division, TFGLabs, which is responsible for leading TFG’s digital transformation efforts.
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By GlobalDataTFGLabs co-head Claude Hanan said: “We will continue to service Quench’s existing partners and customers and, in fact, will 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 the Quench team, we believe that we can build on the foundations and continue to enhance the offering.”
Founded in 2016, Quench is a South African app-based delivery start-up that provides same-day deliveries of groceries, food, medication and alcohol to customers in the country.
In March, the company secured funding from South African venture capital firm Imvelo Ventures.
The platform has established partnerships with several brand houses, including AB-InBev, Heineken, Pernod Ricard & Distell, Woolworths, Ultra Liquor and TOPS at SPAR group.
Following the acquisition, TFG will continue to serve Quench’s existing partners and customers.
TFG has a portfolio of brands across the clothing, footwear, jewellery, sportswear, homeware, cellphones and technology sectors.
Last year, the company acquired value clothing retailer Jet from South African retail company Edcon, having submitted a conditional offer for the business in July.
