The online fashion sites group has sold a majority stake in its Middle East platform, Namshi, to Emaar Malls Group for 151 million dollars. The group unsuccessfully tried to buy Souq.com earlier this year.

The German online retailers incubator will retain the reminding 49 percent holding in Namshi. The e-tailer made its first annual profit last year on revenues of over 151 million dollars, which implies it has been valued at a multiple of 1.95 times net revenue.

Commenting the acquisition, Mohamed Alabbar, chairman of Emaar Malls and its parent group, Emaar Properties, said: "The acquisition … underlines our digital-driven strategy to leverage the growing e-commerce market in the Middle East and North Africa region."

"Namshi offers a perfect fit for Emaar Malls in accelerating its focus on multichannel retailing and creating long-term value for its stakeholders," added Alabbar.

As part of the deal, Emaar Malls will develop Namshi’s logistics infrastructure and help its geographical expansion while Global Style Group will continue its support.

Hosam Arab, the managing director of Namshi, said: "We are very excited to welcome Emaar Malls as our majority shareholder. We are confident that this partnership will unlock further opportunities and help accelerate the development of Namshi for the benefit of our customers."

"We are proud of how Namshi contributes to the growth and vibrancy of e-commerce in the Middle East since its inception in 2012 and I would like to congratulate the management team for their great accomplishment," summed up the deal Romain Voog, chief executive of GFG.

 

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