World’s largest online retailer snaps up Middle East’s largest ecommerce platform.
Amazon, the world’s largest online retailer, has agreed to acquire Souq.com, the Arab world’s largest ecommerce platform. The deal also includes the acquisition of Payfort, an online payment platform that is used by Souq.com.
Started in 2005 in Dubai, Souq.com sells more than two million products including housewares, furniture, books, sporting equipment and electronics in Saudi Arabia, UAE, Egypt and Kuwait. In 2016, the company raised $275 million in funding, which valued it at $1 billion.
“This acquisition is a critical next step in growing our ecommerce presence,” says Souq.com CEO Ronaldo Mouchawar.
Although the details of the Amazon and Souq.com transaction are likely to remain secret, it is a turning point for the development of electronic markets and fintech services in the Middle East. For Amazon, the deal implies a reinforced presence in the Arab world.
“Amazon and Souq.com share the same DNA,” says Russ Grandinetti, Amazon’s senior vice president of worldwide operations and customer service. “Together, we will work hard to provide the best possible service for millions of customers in the Middle East.”