Souq.com manages to make the news on a regular basis in the region, being the largest eCommerce website. Just recently it closed a massive $275 million round of funding, the largest for an eCommerce company in the region. Following this new, Bloomberg is reporting that Amazon is planning a full acquisition of Souq.com for an amount close to a whopping $1 billion.
Will it happen?
Souq.com has long been referred to as the Amazon of the Middle East. Amazon is one of the largest eCommerce outfits in the world with operations and fulfillment centers spread all across the globe. Amazon has surprisingly been missing from the Middle East, a market with exponential eCommerce growth in the last 5 years. This acquisition will firmly supplant Amazon in the region giving them access to hundreds of millions of shoppers across the region. Earlier it was reported that Amazon was looking to acquire a stake in Souq.com but they seem to have proposed a buy-out instead. This will surely leave the competing online retailers in a lurch thanks to Amazon’s decades of experience and deep pockets. On the flip side, it will become more of a consumer-focused market thanks to the competition.
Souq.com is one of the first websites in the UAE to begin selling online and currently claims to sells more than 400,000 products. The products span a multitude of categories, selling and shipping to customers in the United Arab Emirates, Egypt, Saudi Arabia and others in the region.