All eyes on Middle East e-commerce industry
Mergers and acquisitions are new mantras to success for the Middle East region’s e-commerce industry that is already having one of the best times.
Stage was set in March with the entry of US e-Commerce giant Amazon.com that acquired Dubai-based online retailer Souq.com.
Though nobody could predict the full impact of this acquisition at that time but it surely caused a stir in the market.
The latest regional e-Commerce platform that has been acquired by an anonymous business group is JadoPado.
More than six-year-old JadoPado has officially announced this on its blog.
“We’re incredibly happy to announce that JadoPado has been acquired by a large regional business. While we’d love to give you more details, we’ve been sworn to secrecy,” said Omar Kassim, CEO of JadoPado in the company’s official blog.
Though JadoPado website is directing the customers to company’s blog but JadoPado hotcake will remain available till May 25.
“The JadoPado team will be moving into executing great new work, and this unfortunately means that we’ll be closing down the JadoPado marketplace as well as JadoPado hotcake,” added Kassim.
Amazon entry disrupted e-Commerce domain in Middle East The US e-commerce company Amazon.com had beaten Emaar Malls PJSC in acquiring Souq.com in march this year.
Emaar had reportedly made a bid of $800 million for Souq.com but that deal could not materialize. However, Amazon and Souq.com did not disclose their deal amount.
Ronaldo Mouchawar, CEO and co-founder of Souq.com had expressed optimism that Amazon’s entry into the Middle East market will open new avenues for e-Commerce business in the region.
“We are very happy over this deal with Amazon and I am hopeful that it will open new avenues for the e-Commerce industry in the region.
Eventually it will add more value to the overall e-Commerce industry,” Mouchawar told TRENDS. Through Souq.com, Amazon got a well-established market player with around 23 million online visits in a month.
Big business group behind JadoPado takeover Though JadoPado officials refrained from disclosing the identity of the business group behind its takeover but speculations are high in the market.
“Though we have not got confirmed report but we are assuming that Emaar Group is behind this takeover as this large business group has all the capabilities to take e-Commerce industry to another level in the region.
In fact this will be good for the end-consumers as this development will enhance competition in the market,” said a senior partner in a consumer consultancy firm in Dubai, while requesting anonymity.
(This article first appeared on AMEinfo‘s sister title TRENDS)