According to Wamda article about Namshi latest e-commerce platform to expand to Egypt as competition heats up
Namshi is set to expand to Egypt and establish a logistics base in Saudi Arabia following Emaar Malls’ full acquisition of the e-commerce platform.
The Dubai Mall developer acquired the remaining 49 per cent stake for $129.5 million in a pre-determined valuation. Emaar Malls, a subsidiary of Emaar Properties, first bought a 51 per cent stake in Namshi for $151 million in 2017 from Germany-based Rocket Internet.
Founded in 2011, Namshi supplies the mid-market, “below luxury” range of goods across fashion, beauty and homeware and has become one of the most successful e-commerce platforms in the Middle East. Last year, the company recorded sales of more than $230 million, a 16 per cent increase from 2017.
“We’re looking at trialing out other markets, the first one we will trial, from a distance, is Egypt,” said Hosam Arab, chief executive officer (CEO) at Namshi.
While the $2400 gross domestic product (GDP) per capita in Egypt is far lower when compared to the GCC’s $25,000, Namshi is hoping to address the 10 per cent of Egypt’s 100 million-strong population that will be attracted to the company’s price points and brands.
“That 10 per cent is bigger than the population of the UAE, there is a lack of supply and competition and while we will not be significantly cheaper, we won’t be more expensive [than the local suppliers],” said Arab.
No comments:
Post a Comment