The Amazon of the Arab world Souq.com raises $75 million funding from Naspers
Souq.com, the largest e-commerce platform in the Arab region or the Amazon of the Arab world, has secured US$75 million (AED 275.5m) in an additional round of funding from existing investor Naspers Limited. This round of funding brings the total amount raised by Souq.com to US$150 million (AED 551m) – the largest amount raised by any Internet-based business in the region.
The deal values the e-commerce company at more than $500 million, according to Naspers financial statements and Souq chief executive Ronaldo Mouchawar.
Souq, which has warehouses in almost every major city in the Persian Gulf and some in Egypt, aims to reach $1 billion in sales within the next two years according to WSJ. Amazon made $75 billion in sales last year. Amazon has about 110,000 employees, compared to just over a 1,000 at Souq.
Souq.com has grown more than 10-fold in the past two years, further establishing its leadership position in the ecommerce market. Souq.com registers 23 million visits per month on its website, and has 6.2 million registered users. It offers the widest selection of products in over 15 categories, from electronic gadgets to baby diapers in a combined retail and marketplace model.
Souq.com is not the only e-commerce player in the region, however it is the largest other major players are: Namshi (which has raised $34 million USD to date) and MarkaVIP (which has raised $18 million USD to date.
We published last month a rumor that amazon is acquiring souq.com however if this round says something that the exit for souq will be the largest in the history of Arab Internet much bigger of that for Maktoob.
We sent questions to the CEO of Souq into the current stats of souq and what they plan for the future, we will update you on AC -inshallah- as we get the answers.