Dubai-based Emaar Malls, the retail unit of Mohammed Alabbar’s Emaar Properties, has acquired the rest of 49 percent stake in fashion ecommerce platform Namshi for AED 475.5 million ($129.5 million) to complete 100 percent ownership, the mall operator announced today. This comes almost two years after Emaar Malls acquired 51% stake in the company for $151 million at a valuation close to $300 million. The latest stake is acquired at a valuation of $264 million, which is a significant drop from the previous valuation.
Emaar Malls labeled the acquisition as a natural evolution of their digitally driven strategy and said that it “reinforces the position of Emaar Malls in the rapidly growing online market in the Middle East, complementing its physical retail assets portfolio”.
Founded in 2011 as a Rocket Internet company, Namshi is currently the leading fashion ecommerce platform in UAE and Saudi with sales of over $230 million last year.
Mohamed Alabbar, founder and Chairman of Emaar Properties said: “The remarkable growth achieved by Namshi underlines the potential for fashion e-commerce in the region, where, every day, a larger number of people shop online to meet their fashion aspirations. With the consolidation of our stake in Namshi, we are highlighting our commitment to position Emaar Malls for growth over the next decade and to create outstanding value for all our shareholders through our omnichannel strategy.”
Patrick Bousquet-Chavanne, CEO of Emaar Malls, said: “Namshi is a remarkable success story that reflects the changing shopping habits of young fashion-conscious customers in the region. The majority acquisition of the company in 2017 had heralded a new era for Emaar Malls in building its online presence. Today’s acquisition underlines the acceleration of our ‘Digital Forward’ strategy.”