BabySouk, a Dubai-based ecommerce platform that sells products for babies and children between the ages of 0 to 6, and its parent company, Family Souk Ventures, have raised an investment from Mad’a Investment Company, a PE & VC firm based in Riyadh and owned by Abdul Aziz Al Othaim & Sons Holding Company (ASO&SONS), one of the leading conglomerates of the country.
The startup has not disclosed the size of investment but we’ve been able to confirm that it’s seven-figure US dollar. Before this round, BabySouk had raised a total of $1.5 million in multiple rounds since it was founded and this round was bigger than the total amount of investment that startup and its parent company have raised previously, we’ve learned.
Started in 2009, BabySouk currently sells a selection of over 5,000 products including strollers, carriers, car seats, swaddles, slings, clothing, and more on its website, focusing on the UAE market but delivering all across the world. The deliveries in Dubai, though, are free for orders of 200 dirham and above.
The parent company, Family Souk Ventures, is a B2B distribution company for different brands in the parenting industry, including Phil&Teds, Mountain Buggy, Boba, Cuddledry, Merino Kids and Mini Monkey.
Scott Hupe, Chief Executive Officer of Family Souk Venture, speaking to MENAbytes, said that they plan to use the investment to launch an Arabic version of BabySouk’s website to target customers in Saudi and other countries of the region. The startup also plans to use the investment to launch KiddieSouk.com to expand their coverage to products for older children (6-year-olds and above).
“We also plan to substantially grow our exclusive brand portfolio, and geographies where the products are available, and to enhance distribution and supply chain capabilities in order to directly distribute product to all locations throughout MENA, by enabling faster delivery to both B2B and B2C customers,” he explained, in an interview with MENAbytes.
BabySouk’s sales revenue for 2018 witnessed a growth of over 20% YoY after 64% increase in the traffic on their website.
Abdullah A. Al Othaim, CEO of Mad’a Investment, commenting on the occasion, said, “Today, 90 percent of new parents are millennials that are shopping for their children in a completely different way than our parents did — they value selection, quality, design and advice when purchasing products for their families. Our goal is to be the definitive go-to shopping destination across all product categories, services, and price points in this sector.”
The startup currently has 12 people in its team who are working from its Dubai – with an operational team currently being built for Saudi as well.