Amazon has agreed to acquire Souq, report
E-commerce giant Amazon has reportedly finalized the deal to acquire e-commerce player Souq. Souq has 8.4 million products on its platform and it has recently entered into books and grocery segment too.
Souq was most recently valued at $1bn in its latest funding round in which it injected $275 million from multiple investors including Standard Chartered. The platform’s other investors include Naspers Ltd and Tiger Global Management.
According to The National, although, Amazon initially backed out of the acquisition deal but most recently it restarted the discussions around acquisition again. According to Bloomberg, Amazon restarted the talks by putting a figure of $650m over Souq acquisition.
Souq generates 78 per cent of e-commerce in the Middle East and North Africa. But it is expected to get in trouble over the launch of a competitor noon.com, which has been backed by a billionaire Mohammed Alabbar and Saudi Investment Fund.