On Monday, Dubai based eCommerce site souq.com announced that it had received a further $75 million of funding from its investor Naspers Limited.
Souq.com has now received a total of $150 million in funding which is the largest amount raised by any internet business in the UAE.
Over the past two years since the website was launched, it now registers 23 million visits per month and has 6.2 million registered users. It received its initial seed funding from Naspers in October 2012 and now the Amazon-like marketplace website features over 400,000 products in over 15 categories, from electronic gadgets to nappies. Other investors include US based Tiger Global and Jabbar Internet Group.
“We plan to use the funds to deepen our technology investment said Ronaldo Mouchawar, Co-Founder and CEO of Souq.com. We will focus on innovation to provide our customers with a unique and advanced mobile experience, a personalised user experience, and unprecedented delivery and customer service quality. We will also invest in our talent pool to help build these world-class standards.”
According to a recent PayPal study, it shows that MENA is an attractive market for eCommerce with a predicted market size that will reach $15 billion by 2015, 10% of which is expected to come from mobile transactions. In addition to this, 52% of all online shoppers in the UAE have shopped on souq.com according to the companies statement.
More recently, Digital Startups in the UAE have begun to attract a lot of interest from investors. App firm Wally and eCommerce site Cobone have received a large amount of funding in the past couple of years. Diwanee, a Dubai based digital media company also recently announced that they have secured an investment worth $5 billion from their investors, Webedia.