- Prachi Singh |
Global Fashion Group (GFG) has entered into a strategic partnership with Emaar Malls, the shopping malls and retail business majority-owned by property developer Emaar Properties. The company announced that under the partnership, Emaar Malls will acquire a 51 percent stake in Namshi, the online fashion retailer in the Middle East, for a consideration of 151 million dollars including investment in the company for its future growth, with GFG retaining the remaining 49 percent.
Commenting on the development, Mohamed Alabbar, Chairman of Emaar Malls and Emaar Properties, said in a statement, “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.”
Emaar Malls to acquire majority stake in Namshi
As a part of the agreement, Emaar Malls will support the company to access additional fashion brands, further develop its logistics infrastructure and expand its geographical footprint in adjacent countries. 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.
“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,” added Hosam Arab, MD of Namshi.
Led by co-founders Hosam Arab, Faraz Khalid and Hisham Zarka, Namshi launched in 2012, and offers a wide range of over 50,000 products across over 600 international and local fashion brands and its own private labels. The company already serves customers across the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and Bahrain.
For the full year 2016, the company recorded net revenue of 555 million UAE dirham (151 million dollars) and achieved its first full-year of profitability and positive cash flow.
“We are proud of how Namshi contributes to the growth and vibrancy of e-commerce in the Middle East since its inception in 2012. 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,” said Romain Voog, CEO of GFG in the statement.