Ideavelopers Invests Over 1 million U.S. Dollars In Egyptian E-commerce Site Nefsak.com
E-commerce in the region is reaching the tipping point, as the market seems more mature to deal with this type of commerce, yesterday LivingSocial one of the leading group buying sites in the world acquired GoNabit.
Earlier this month, Ideavelopers closed a deal with Sherif Nassar, Founder and CEO of nefsak.com, where Ideavelopers will invest 10 million EGP (1.67639 million U.S. dollars) in his company. Founded in 2008.
Nefask says it has been the fastest growing Egyptian online retailer with sales increasing five times year over year. Today nefsak’s online catalogue has over 18,000 products covering a wide range of categories from computers and electronics to home decoration and fashion. The investment according to a press release will help nefsak develop into a household brand and scale its operations to meet growth expectations.
In his comment on the investment, Ideavelopers Managing Partner, Tarek Assaad said, “We are delighted to work with nefsak, we believe they are the leader in their market. The level of dedication and passion that Sherif Nassar demonstrated while building this company is impressive. These characteristics are essential in an entrepreneur whose aspiration is to build an amazon.com for the Middle East”.
This investment comes as Ideavelopers’ third investment in an e-commerce related company. In mid 2008, Ideavelopers had invested in SMART Cards Applications, a company that runs an electronic network for distributing food rations. Later that year, it also invested in Fawry, the leading provider of payments services. “We believe that e-commerce is reaching an infliction point,” said Ziad Mokhtar, Partner at Ideavelopers, “the people who were 10 years old when the Internet first came to Egypt in the late 90s are now entering the workforce. Adding the increased proliferation of broadband, this translates into a critical mass of users who feel safe, spend more time, and can spend more money online.”
Sherif Nassar started attracting the attention of local and international investors in late 2010. “I chose Ideavelopers”, Sherif says, “because I knew they can help support the company as it grows. They can provide necessary funds, sound strategic advice, and access to local networks”. Both, Tarek Assaad and Ziad Mokhtar from Ideavelopers, as well as Mr. Sameh Farid have joined the board of directors of nefsak.
Ideavelopers is Egyptian based venture capital firm a subsidiary of EFG-Hermes Private Equity. The firm manages the Technology Development Fund – a $50 million fund focused on early stage technology companies. To date, the firm invested over $25 million in 17 companies operating inside and outside Egypt.