The terms of the deal have not been made public yet. But most of the previous reports estimated the deal to be between $650 million to $750. However one report by Arabian Business had quoted the price to be around $580 million.
Souq.com has issued a statement containing a note by their Co-Founder & CEO Ronald Mouchawar who said:
“SOUQ.com, the Middle East’s largest online retail and marketplace site, is joining the Amazon family. This is a profound accomplishment for us as we have always strived for the empowerment of our partners, our merchants, our team, local entrepreneurs and every person at SOUQ.
We always dreamed of combining technology with trade to give the Arab world a way to trade online. 12 years ago, we started SOUQ.com to bring you the best e-commerce solution in our region. Our basic principle was and still remains – channeling the power of technology to connect more people to more products – unlocking possibilities, improving quality of life across our region and delivering the best online shopping experience for our customers.”
Amazon’s Vice President for International Consumer, Russ Grandinetti also commented on the deal; saying
“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 learning 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.”
As part of the deal, Amazon has also acquired Souq.com’s subsidiary Payfort which happens to be one of the most successful fintech companies in the region.
“Today as part of Souq Group Inc. we are pleased to officially announce that PayFort International Inc. and its subsidiaries will be acquired by Amazon. through Amazon’s acquisition of the Souq Group. We are excited about the future opportunities that are ahead of us as part of Amazon.” said Omar Soudodi, Managing Director of Payfort
Regardless of the impact of this acquisition on startup ecosystem of the region, its a great news for the consumers in Middle East & North Africa. Amazon’s entry in the region using already established infrastructure of Souq.com is definitely going to take things forward multiple folds.
Latest posts by Zubair Naeem Paracha (see all)
- Saudi fintech Hakbah raises $1.2 million seed for its savings groups platform - January 25, 2021
- Saudi fintech Tamara raises $6 million in country’s largest seed round for its buy now pay later platform - January 20, 2021
- Turkish 10-minute grocery delivery startup Getir raises $128 million for international expansion, now valued at $850 million - January 20, 2021