In a move that appears to be more of a consolidation in a holding group than an acquisition, it is announced that Souq.com, an e-commerce portal from the Middle East has acquired the private shopping portal Sukar.com.
Sukar.com is majority owned by the same group that owns Souq.com. So for us this seems more like a consolidation against the big force of another shopping portal, MarkaVIP.com which has recently closed a Series B of $10 million investment. Souq.com had announced investing $2.5 million in start-up Run2Sport.com earlier.
More details follows from their release:
Sukar.com, the Middle East's first and online private shopping club has been acquired by Souq.com, the largest online retail and marketplace in the Arab world in a move aimed at consolidating the market leadership of both enterprises in the online space.
Sukar.com was established in 2010 and quickly took a leadership position in the fashion & lifestyle ecommerce category, by offering the website's rapidly growing member base exclusive access to daily incomparable deals, on a rich selection of over 700 of the world's top fashion and lifestyle brands in the women's, men's, children's, beauty, gadgets, and home fashion categories.
"The acquisition of Sukar.com will strategically align our two companies, maximizing our synergies and consolidating our resources with the aim of further building the largest e-commerce business in the region," said Souq.com CEO Ronaldo Mouchawar. "The fashion market in the Middle east is more than $30bn, and on line share is less than 1%, we have a huge potential and that is the main reason of this acquisition."
Souq.com, first established in 2005 and is part of Jabbar Internet Group. Souq.com is the largest e-commerce site in the Arab world with operations in United Arab Emirates, Saudi Arabia, Egypt, Jordan, Kuwait and soon expanding to new markets.
Sukar.com founder SayginYalcin said, "Sukar.com has continuously proven to be the market leader in its sphere. The acquisition by Souq.com has now created the largest ecommerce force in the region. This investment will enable Sukar.com to accelerate its growth, add unique values to the new organization and further ensure its market leadership."
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