According to multiple sources at TechCrunch, Amazon is acquiring MENA’s e-commerce giant Souq for a price of $650 million, to herald its expansion in the region. The acquisition number is somewhat disappointing considering the startup was once valued at $1bn in its last round of funding a year ago, when it raised $275 million.
Souq.com previously raised $425 million, according to Crunchbase, with investors including Ballie Gifford, IFC Venture Capital Group, Jabbar Internet Group, MENA Venture Investments, Naspers, Standard Chartered Bank and Tiger Global Management. Souq.com is the region’s largest e-commerce portal, with the company connecting 75,000 businesses with consumers to buy around two million across in more than 30 categories, such as electronics, fashion, household goods and (most recently) car accessories.
MENA has a growing e-commerce market, accounting for only two percent of all retail spend, according to a report from McKinsey. Amazon’s Souq.com faces competition from Noon.com, Wadi, and Rocket Internet-backed Namshi.
For more information, visit https://techcrunch.com/2017/03/23/amazon-to-acquire-souq-a-middle-east-clone-once-valued-at-1b-for-650m/