- Saudi Arabia’s Tamer Group, a healthcare distributor and logistics company has acquired a majority stake in UAE-based e-commerce marketplace for mothers, Mumzworld.
- Founded in 2011 by Mona Ataya and Leena Khalil, Mumzworld is the Middle East’s largest online marketplace for mothers and baby goods offering 250,000 products across numerous global and regional brands.
- The company had raised $50 million in funding before its acquisition and counts Wamda among its investors.
- With a regional community of 2.5 million mothers, the acquisition will help the company expand geographically and diversify its product offerings by strengthening its resources and network.
Mumzworld, the largest mother, baby and child e-commerce platform in the Middle East, has signed a sales and purchase agreement with Saudi Arabia’s Tamer Group for a proposed acquisition of a majority stake in Mumzworld. Financial details of the acquisition were not disclosed.
In a statement issued by the online retailer, the “choice to partner with a regional player is a deliberate one, as it allows the company to continue to grow in key regional markets and expand its digital footprint”.
Founded in 2011 by Mona Ataya and Leena Khalil, Mumzworld was the first online retailer targeting mothers in the Middle East and claims to have achieved 10x growth over the past five years.
“This is just the beginning for us,” said CEO Ataya. “We are better positioned than ever to accelerate growth, drive wider geographic expansion and continue to build a tech footprint serving customers better than ever. We will continue to own the supply chain for mother and child; both our customers and suppliers are at the forefront of this next exciting phase for Mumzworld.”
The company had until now raised $50 million in funding, counting Wamda among its investors. It has amassed a community of 2.5 million mothers in the region across 20 countries, counting both the UAE and Saudi Arabia among its biggest markets. Mumzworld currently offers more than 250,000 products from 5500 brands.
“We are intent on digitising the regional ecosystem, particularly in Saudi Arabia. With Tamer Group’s scale, size, reputation and regional knowhow - our combined complementary entity will be transformative for the region,” added Ataya.
The regional e-commerce sector has achieved substantial growth since the pandemic. Back in 2017, online shopping accounted for just 2 per cent of the retail market in the Middle East and North Africa, reaching a value of $8.3 billion. By the end of 2020, the e-commerce sector had reached a value of $22 billion, with the bulk of this growth being driven by the UAE, Saudi Arabia and Egypt, which together account for 80 per cent of the region’s overall e-commerce market.
Competition among the online retail sector focused on mothers and children has intensified over the past few years with the emergence of Softbank-backed India-based Firstcry.com as well as regional players like noon.com.
For the Tamer Group, one of the largest regional healthcare distributors with an annual revenue of SAR9.2 billion, “e-commerce is no longer an option, but a necessity”, according to chairman Ayman Tamer.
“We believe that e-commerce is the future for the GCC,” he said. “The world has shifted to a customer-centric model with consumer behaviours, trends and data having become the new gold. Players in the space need to understand their customers, and adapt to their changing needs. Mumzworld will be a steppingstone towards “Tamer Digital” - a very ambitious vertical we intend to build to serve the nation, working towards delivering on Saudi’s Vision 2030.”
Both Ataya and Khalil “remain material shareholders” of Mumzworld and retain their position on the board.