Amazon to acquire Souq.com: reports
Souq.com has a valuation of about US$1 billion; no word yet on how much Amazon is willing to pay
E-commerce giant Amazon has reportedly agreed to buy out UAE-based Souq.com.
Citing unnamed sources The National newspaper reports that the sale, which has been the source of speculation for several months, has finally been completed.
Souq.com had been valued at US$1 billion in a $275 million funding round in February last year. No word yet of how much Amazon is paying for the business, as the Americans were said to walk away earlier from the talks over the asking price.
We have been unable to get confirmation from Souq.com at this time.
Souq.com is by far the largest online retailer in the region. It features 8.4 million products across 31 categories from consumer electronics, fashion, health and beauty to household goods, and groceries. The site attracts over 45 million visits per month, the company says.
If confirmed, the entry of Amazon would come at a pivotal moment in the region’s ecommerce market. Noon.com, the $1bn online retailer backed by Emaar’s Mohamed Alabbar is expected to launch soon after missing a January start. Alabbar said during its unveiling that the site would offer 20 million products, dwarfing Souq.com but much lower than the 400+ million products Amazon sells.
However experts say the market is big enough with the Middle East ecommerce expected to reach USD 20 Billion by 2020.