Amazon.com Inc. has finally confirmed acquisition of Souq.com, an e-commerce marketplace serving the Middle East based out of Dubai. Souq.com has been known as the Amazon of Middle East and the recent acquisition confirms its standing. The U.S. e-commerce giant beat out Emaar Malls PJSC, which had bid $800 million for Souq.com. Amazon and Souq.com didn’t disclose deal terms.
Souq.com is the region’s largest online retailer and was hailed as its first unicorn, a company with a valuation of at least $1 billion. Amazon had been trying to acquire Souq since long to gain entry into the Middle East.
Until today, Amazon did not have a presence in the Middle Eastern region which has a population of around 50 million consumers who rely heavily on online retail shopping. Acquiring Souq.com has given Amazon a foray into a new market through a well-established player with a claimed 23 million online visits a month. The retailer, which employs over 3,000 people, sells more than 400,000 products, from televisions to perfumes.
While the acquisition is said to bring new projections and offerings for both the company and its audience, we can’t wait to order our first purchase through Amazon aka Souq.com!