Souq.Com is one of the few Middle East-based online retailers available in the region. Due to the quick adoption of technology and mobile buying, the e-commerce platform has exploded in terms of growth and reach, making it a lucrative target for other companies looking to expand to the Middle East, one being Amazon.
According to Bloomberg, Seattle-based Amazon is considering a bid for the entire site, as opposed to the initial 30% stake Souq.Com was looking to divest. Sources close to the matter said that no final agreements have been reached and negotiations could still falter. However, one number is being floated around and that’s the purchase price. If Bloomberg’s sources are correct, the sale could be for as high as $1 billion, paving the way for Amazon to enter the Middle East market.
According to Souq.com’s website, the platform sells more than 400,000 products, across multiple categories, to customers in the United Arab Emirates, Egypt, Saudi Arabia and other ME countries. In an effort to find investor’s, Souq.com appointed Goldman Sachs Group Inc. to find buyers for a share of the company. The e-commerce platform is currently holding its White Friday sale.
Source: Bloomberg
