25/05/2017 06:23 AST
Leading developer Emaar Properties said its retail business unit has signed a strategic partnership deal with emerging markets’ leading fashion e-commerce platform Global Fashion Group (GFG) to further the growth of Namshi, a leading online fashion retailer in the Middle East.
Under the partnership, Emaar Malls will acquire a 51 per cent stake in Namshi for $151 million, which includes investment in the company for its future growth, and GFG retaining the remaining 49 per cent stake.
This partnership will accelerate Namshi’s development in the region and allow it to continue to flourish as the region’s pre-eminent fashion e-commerce destination.
Led by co-founders Hosam Arab, Faraz Khalid and Hisham Zarka, Namshi offers a wide range of over 50,000 products across more than 600 international and local fashion brands and its own private labels.
The company already serves over 750,000 customers across the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain. For the full year 2016, the company had recorded a net revenue of Dh555 million and achieved its first full-year of profitability and positive cashflow.
Emaar Malls will also support the company to access additional fashion brands, further develop its logistics infrastructure and expand its geographical footprint in adjacent countries.
Under this deal, Namshi will continue to benefit from GFG’s network, expertise in fashion e-commerce and shared resources, such as global brand acquisition and global IT development and innovation.
On the strategic deal, Mohamed Alabbar, the chairman of Emaar Malls and Emaar Properties, said: "The acquisition of a majority stake in Namshi 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 multi-channel retailing, and creating long-term value for its stakeholders," he stated.
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."
Romain Voog, the chief executive of GFG, said: "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."
"With the complementary strengths of Emaar Malls and GFG, Namshi is now more than ever uniquely positioned to be the best long term partner for fashion brands and customers in the region. GFG’s partnership with Emaar Malls follows the Group’s strong performance in 2016 and is another step in our journey to create sustainable, profitable fashion e-commerce leaders in each of our regions," he added.-
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