Amazon said to be circling UAE rival Souq.com for 30% stake

3-Nov-2016

Dubbed the Amazon of the Middle East, souq.com is reportedly looking to part with a minimum 30% stake

Ronaldo Mouchawar, CEO and Co-founder of souq.com

Amazon is rumoured to be considering making a bid for a stake in souq.com, a Middle Eastern e-commerce platform.

Souq.com sells products across consumer categories including Perfumes & Beauty, with brands from major international cosmetics companies such as Dior, Revlon, Braun, the Balm Cosmetics, Calvin Klein and e.l.f.

According to Bloomberg, people familiar with the matter caught wind of the potential bid but have asked to remain unnamed.

The stake in souq.com represents at least 30% of the company and is said to be attracting interest from private equity firms and independent companies.

Souq.com has been liaising with Goldman Sachs to secure a buyer for the stake, Bloomberg reported, with existing investors Tiger Global Management and South Africa’s Naspers Ltd said to be open to parting ways with their stake.

Back in February, souq.com completed a funding round that exceeded AED1bn, the equivalent of $275m.

The funds were raised to help drive the growth of the company via technology investment and new product category launches, Ronaldo Mouchawar, CEO and Co-founder of souq.com explained.

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