AAA Souq houses $272m round

Souq houses $272m round

United Arab Emirates-based online marketplace Souq.com closed a AED 1bn ($272m) round featuring media and e-commerce group Naspers today.

Naspers invested alongside Tiger Global Management, Standard Chartered Private Equity, the World Bank-run International Finance Corporation, Baillie Gifford and undisclosed “regional and tech-focused financial institutions”.

Bloomberg reported earlier this month that Souq was raising funding at a valuation of more than $1bn but the company has not confirmed that figure.

Souq operates what it maintains is the largest e-commerce marketplace in the Middle East, selling a wider range of products including electronics, clothing, cosmetics, furniture, home appliances and sporting equipment.

Naspers invested $75m in Souq in 2014, following on from a $40m round in 2012 backed by Naspers, Tiger Global and internet company Jabbar Internet Group. Souq has raised about $425m in funding since it was founded in 2005.

Ronaldo Mouchawar, Souq.com’s co-founder and CEO, said: “The funding will be used to drive further growth by investing in technology, scaling our marketplace operations, launching new product categories and recruiting the best talent.

“The e-commerce market in the Middle East is growing very fast and is expected to reach $20bn this year. As the largest e-commerce platform in the region, we focus on the value we bring through technology and job creation.”

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