Dubai
Many media reports have stated that Amazon is eyeing a stake in Souq.com as its investors — Tiger Global and Naspers — are keen to dilute its stake in the platform, and it got further highlighted when Amazon founder Jeff Bezos visited Dubai last week.
“Amazon chief came to the region and they are learning about the region. I cannot speak on behalf of Amazon chief. We have hired Goldman Sachs Group to help us on the investment track. As the company is growing, we have ambitions to grow and we need a financial institution to support us,” said Ronaldo Mouchawar, CEO and co-Founder of Souq.com.
Souq had raised $275 million (Dh1.01 billion) from investors, including Tiger Global and Naspers, in February this year.
“We have already raised cash to fulfil our need and we are looking at other options now as we mature as a company. We are not there for the IPO yet. Last two years, we were investing heavily in mobile and infrastructure,” he said.
When asked how Mohammad Al Abbar’s new $1 billion e-commerce venture — Noon.com — going to impact Souq, he said: “We have not seen the platform and I believe that this category will grow and we will always have a huge share. There are many players in the region.
“I am happy to see that many e-commerce platforms are coming. There are many malls in Dubai and people have the right to choose the mall they love and that is life. We are a home-grown brand with expertise in this field.”
He added that the retail market in general has been a challenging time, especially in Saudi Arabia due to the reforms. “Overall, we are growing 30-40 per cent year over year. In Saudi Arabia, we are growing 50 per cent year-over year. Egypt would have grown more but the devaluation issue impacted us,” Mouchawar said.
When compared to other online, bricks-and-mortar retailers, he said that Souq is doing “good business”.
