Dubai: Dubai-based daily deals website Cobone is acquired by a New York investment firm Tiger Global Management.
Tiger Global is one of the leading Hedge Funds globally and have made many successful investments into companies like Facebook, Linkedin and Survey Monkey. They also have significant interests in emerging markets and understand that any investment into markets like these are long term.
“When we met, our visions instantly aligned as our vision is much longer than three years and having Tiger backing Cobone for the long term was critical for the management team and our employees but also our partners as we will continue to invest into this region,” Warrick Godfrey, Co-founder and Chief Marketing Officer of Cobone.com, told Gulf News.
He said the Middle East e-Commerce industry has never been more exciting. The number of new entrants into the market is growing month on month and there is also more investors looking at this market then ever before.
E-commerce market is going to get a boost with this deal as more players are eyeing Middle East a prospective growth market.
According to Wamda.com, B2C e-commerce sales in the region are expected to reach an estimated $15 billion (Dh55.09 billion) by 2015 compared to $9 billion last year. Online shoppers spent $3.2 billion last year in the Gulf.
“We have built the leading Daily Deal business in the region and we have significantly bigger goals to achieve in the coming few years so aligning our vision with a global heavyweight such as Tiger puts Cobone in a great position to execute on what we have planned,” Godfrey said.
Godfery did not disclose the value of the deal. But according to TechCrucnh website, the deal is expected to be worth $40 million (Dh146.92 million).
The deal sees Cobone’s parent company Jabbar Internet Group exit its investment in the online firm.
Cobone’s team, including CEO and founder Paul Kenny, as well as Warrick Godfrey will continue to lead the company.
“We will be making significant changes in the business over the coming year. Any decisions that will made are important to have a clear path to profitability and drive growth in the core areas of our business. The values we have held in the company since inception will remain. Cobone will continue to offer amazing local deals and grow the overall e-Commerce space in Mena,” Godfrey said.
