UAE's JadoPado sells minority stake to investors at $28m valuation
Consortium led by BECO Capital fronts $4m to accelerate company's growth
UAE-based online retailer JadoPado has sold a "significant" minority stake to an investor consortium led by BECO Capital, valuing the business at AED 102m ($28m), the company announced today.
BECO Capital is a regional venture capital firm which specialises in technology investments around the GCC. It has invested AED 14.69m ($4m) into JadoPado, which will use the cash to accelerate growth and to expand its services across the Middle East and into other emerging markets.
Earlier this year, JadoPado repositioned itself from being a direct online retailer to becoming an online marketplace available to sellers from around the world. The company said that it has 2,500 sellers using the platform, and that this has led to over 55,000 products being made available to customers. What's more, while the company began with a focus on electronics, it has since broadened its offerings to include everything from fashion to household appliances.
"JadoPado has seen exponential growth since re-positioning as a marketplace platform earlier this year," said Omar Kassim, JadoPado's CEO.
"BECO Capital's investment is indicative of our strong market positioning and we're incredibly excited to bring them on as our partners in revolutionising commerce in emerging markets."
BECO Capital has stakes in local technology firms such as property listings site Propertyfinder and ride-hailing service Careem. The company said that it focuses exclusively on supporting technology start-ups that play in promising sectors, which is why it chose to invest in JadoPado.
"With the increase in consumer traffic and merchant acquisition, JadoPado is changing how businesses in the region are selling to consumers and how consumers are buying products and services. JadoPado has created a disruptive marketplace that will bring about a dramatic transformation in the sector. It has an incredibly strong and scalable platform, and offers an efficient solution to reach customers in rapidly growing e-commerce markets," said Dany Farha, CEO of BECO Capital.
The move marks BECO Capital's first investment in a marketplace platform. The e-commerce market in the Middle East is nascent, but is growing as it takes share away from traditional retail. JadoPado said that the region's two largest e-commerce markets, UAE and Saudi Arabia, have grown on average 40% annually since 2009, and are projected to cross $7 billion in value soon.
"Online behaviour in the Middle East continues to evolve rapidly and consumers are making more astute choices when it comes to shopping online," said Kassim.
"We're seeing steady growth in brick and mortar retailers looking to add an e-commerce channel and trying to figure out how to turn themselves into omni-channel retailers. We see JadoPado as an important part of that mix, allowing retailers to go to market quickly and test the waters before they throw millions of dollars towards change."