Amazon Completes Deal To Purchase Souq.com
After it was first introduced its its intentions in March, Amazon has now entered into the Center East with its acquisition of Souq.com, described by many because the Amazon of the Arab world. The valuation of the deal isn’t often called but, though the determine of $650 million has been mooted by Techcrunch and Bloomberg have reported that the deal might be price $1 billion.
Who Are Souq.com?
Souq.com is called the Amazon of the Arab world and sells greater than 1.5 million merchandise on-line to prospects throughout the Arab world together with Saudi Arabia, the United Arab Emirates and Egypt. Beforehand, the corporate has secured funding totalling $275 from Naspers and Tiger International.
The web site and ecommerce platform was based in 2005 by a bunch of people together with Ronaldo Mouchawar. Initially an public sale web site that was linked to the web portal Maktoob, in 2011 Souq.com modified its technique and mannequin and it turns into a web based buying web site like Amazon with a market and retail gadgets on the market. As of March 20, it has offered over 8.4 million merchandise throughout a spread of 31 classes that embrace, family items, child, trend, electronics, well being and sweetness. The web site will get round 45 million visits monthly.
Future Plans
Now the acquisition has been made, the 2 firms stated at present that they’ve accomplished an preliminary integration with will allow customers wherever they’re to log into Souq.com utilizing their Amazon credentials. Then, the following plan is to combine all the companies and merchandise which might be supplied throughout the 2 websites which can allow them to leverage their respective scale. In an announcement that was launched following information of the acquisition, Souq.com highlighted the potential to combine with Amazon’s world buyer base and vendor standing to spice up its enterprise.
“It’s an exhilarating time for the ecommerce business within the area. Along with Amazon, our objective is to supply our prospects the widest product choice, nice costs, improved supply occasions and first-rate customer support,” stated Souq.com CEO and co-founder Ronaldo Mouchawar in a press launch. “Integration of Amazon’s expertise and world sources with our native experience will assist us to supply an awesome service to our loyal prospects.”
The deal is an effective one too for Amazon because it permits them to achieve a agency footage into one of the promising areas of the world for ecommerce, an space that has an enormous potential to develop considerably. The area has a complete of fifty million shoppers and is a comparatively untapped market, with simply 2% of all retail spend being completed on-line. The deal can be an indicator that Amazon should not simply ready to develop their very own providing to develop their enterprise, however are keen to purchase their option to.
