The Tamer Group, a Saudi company interested in healthcare, beauty, and FMCG, is acquiring Mumzworld, the region’s leading e-commerce platform for maternity and baby products, the company said in a statement. The financial details of the deal were not disclosed. The Jeddah-based company that imports, distributes, promotes, markets, and manufactures a variety of products previously invested in Mumzworld in 2018.
The Dubai-headquartered startup has raised over $ 50 million in total funding, including $ 20 million Series B funding from the Dubai Gulf Islamic Investment Corporation in October 2018. Other investors include Wamda Captial, Global Ventures, Endeavor Catalyst and Saned Partners.
Mumzworld was founded in 2011 by Mona Ataya and Lina Khalil and is available in the United Arab Emirates, Saudi Arabia, Kuwait, Bahrain, Oman, Jordan and Lebanon through its web and mobile platforms. The e-commerce platform has thousands of retailers, distributors, manufacturers and brands as partners who sell their products on Mumzworld.
He claims to have served over 2.5 million customers to date. According to public figures, Mumzworld has over 1 million visitors each month and Android apps have been downloaded over 500,000 times.
Mumzworld’s competitors include e-commerce markets such as Amazon and Noon, as well as other similar regional and international platforms (with business in select Middle East markets). Sprii, one of its main competitors, raised more than $ 15 million and was liquidated in December 2020 due to not being able to raise more funds to continue working. Its closure raised questions about the economics of e-commerce platforms operating in this category.
Commenting on the acquisition, Mona Ataya, Co-Founder and CEO of Mumzworld, said: “We are delighted to join the Tamer Group and create the largest women-led e-commerce business in the Middle East. Over the past five years, we have achieved 10x growth, and this is just the beginning for us. We are more than ever able to accelerate growth, expand geography and continue to expand our technology reach to serve our customers than ever before. We will continue to have a parent and subsidiary supply chain; our customers and suppliers are at the forefront of the next exciting phase of Mumzworld. ”
Mumzworld claims the Middle East maternity, baby and childcare market is worth over the US $ 10 billion. It is estimated that although the penetration rate of online services is still relatively low, below 10%, the online segment is growing at about 39% annually.
This, along with the increase in online shopping, will further boost e-commerce companies like Mumzworld, Atay said.
During the global pandemic, Atay said demand for basic baby products “grew significantly” and the company has responded well to supply chain problems caused by the epidemic. She also said that the region’s high birth rates and a young population will ensure the future growth of companies like Mumzworld.
As competition from Amazon and its regional rival Noon.com, backed by the Saudi Wealth Fund, intensifies, the deal increases risks, and the Indian baby products site FirstCry.com is also expanding its presence in the Middle East. The Indian company was reportedly valued at $ 2.1 billion in a funding round earlier this year, and SoftBank Group is one of its largest investors.
Online shopping has grown in the Middle East over the past decade and expanded as the pandemic forced people to mostly stay at home and rely more on online shopping.
However, despite huge growth potential, tough competition and weak economic growth have presented several e-commerce startups in the Gulf region with challenges. Despite millions of dollars in funding, online baby goods retailer Sprii and fashion startup The Modist have shut down. Another Dubai-based platform, Awok.com, announced its closure last year.