The Amazon of the Middle East's latest funding round is one of biggest in the region, and more acquisitions are underway.
Souq.com (a.k.a. The Amazon of the Middle East) has just raised $275 million worth of investments in its latest funding round. The deal is considered “one of the biggest funding rounds for a company in the region,” according to CNBC.
Among the investors are Tiger Global Management of New York and Naspers of South Africa, as well Standard Chartered Equity, International Finance Corporation (IFC), and investment management firm Baillie Gifford.
Souq.com Co-Founder and Chief Executive Officer, Ronaldo Mouchawar, explained that the funding will go towards expanding the company’s stock as well as improving its clientele’s mobile experience.
"We have a high mobile penetration in the region and we continue to focus on mobile capabilities," Mouchawar told the network in a phone interview. "Over 50 per cent of buyers shop through app or mobile web, so we are focusing on making that better, customising it, making that more personalised. The shopping screen is smaller on mobile and you have to be more innovative."
Mouchawar also said that the company is looking to claim a much bigger market share of the e-commerce industry, which, according to him, is estimated to reach $20 billion this year.
Souq.com has its own last-mile delivery system, as well as a payment firm it has recently acquired, which Mouchawar says provide an ecosystem that will help the company improve its customer experience. He also revealed that the e-commerce giant is planning on more acquisitions.