A lot of rumors were on the go since last week about Amazon’s interest in buying Souq.com. However, the company finally confirmed that the deal has been set right through mutual agreements. Amazon will buy Souq.com, Middle-East’s largest e-commerce and online retail platform. The deal is expected to be closed later this year.
Souq.com is always referred to as the Amazon of the middle east. And why not be called so? The company sells more than 8 million products and generates about 50 million monthly unique visits. The customers are mostly located in Egypt and other Gulf countries.
Souq.com will keep its branding even after the acquisition. Amazon initially planned to acquire 30 percent stake in the company valuing Souq.com at around $1 Billion. However, the things changed while conversations and Souq.com finally agreed to be outrightly acquired by Amazon.
“Amazon and SOUQ.com share the same DNA – we’re both driven by customers, invention, and long-term thinking. SOUQ.com pioneered e-commerce in the Middle East, creating a great shopping experience for their customers. We’re looking forward to both learnings from and supporting them with Amazon technology and global resources. And together, we’ll work hard to provide the best possible service for millions of customers in the Middle East,” said Russ Grandinetti, Amazon Senior Vice President, International Consumer to CIOL.
“We feel the opportunity, and growth in this part of the world is still massive,” said Ronaldo Mouchawar, CEO of Souq. “Online is just 1 to 2% of what is being purchased. For us culturally as well, Amazon is a great fit for us, and this is why Amazon was our partner and choice.”
The company Souq.com was founded by Ronaldo Mouchawar along with two more partners in 2007 and employed 5 people. At that time, e-commerce was virtually existing in the middle east as no major players were on the side. Today, Souq.com employees more than 3000 people around the Middle East.