The Kuwaiti franchise operator M.H. Alshaya Co. has acquired a strategic stake in the e-commerce Noon. According to sources familiar with the matter, it was a USD 1 billion joint venture between a group of prominent Gulf investors, led by the Emirati billionaire Mohamed Alabbar and the Public Investment Fund of Saudi Arabia.
Some of the Alshaya franchises include international brands in fashion, health and beauty – Victoria’s Secret, The Cheesecake Factory, Boots, and more. It is the first retailer to announce a cooperation with Noon which was planned to launch in January, selling 20 million products.
Noon goes beyond the brick and mortar practices that often shape the retail landscape in the Middle East. The innovative platform offers its retailers single brand sourcing, market intelligence, original and authentic products, as well as fast delivery.
Mohammed Alshaya, Executive Chairman of Alshaya, commented that the new alliance would help them ”reach new customers, reach new market segments, and participate in next level of growth in regional e-commerce.”
Mohamed Alabbar, the founder of Noon, confirmed it would also work with local brands and retailers to help them grow through the platform. He believed that Noon’s unique business model and the strong supply chain would benefit the retailers as well as the customers. Next to the diverse products’ catalog, the Noon would also offer impeccable customer service, modern payment methods, and a time-saving mobile version of its site.
The e-commerce sector in the GCC has experienced rapid growth during the recent year, mainly due to the local affluent and digitally savvy population. Earlier this spring, Amazon purchased the e-commerce platform Souq.com for USD 580 million. It was the biggest foreign acquisition in a regional startup. Noon acquired the online market platform JadoPado and a USD 151 million stake in the Dubai-based fashion retailer Namshi.