The MENA's First Woman-Led E-Commerce Acquisition: Saudi Business Conglomerate Tamer Group Acquires A Majority Stake Of Mumzworld Jeddah-based Tamer Group is one of the largest regional healthcare distributors with annual turnover of 9.2 billion Saudi riyals and a compound annual growth rate of 11%.
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Mumzworld will retain a high degree of autonomy, including the retention of the Mumzworld branding and its founders Mona Ataya and Leena Khalil continuing to drive the business, sit on the board, and remain material shareholders.
The proposed transaction, whose financial details have not been disclosed, is subject to formal regulatory clearance from the General Authority for Competition in Saudi Arabia.
In a press release, Mumzworld announced the signing of a sales and purchase agreement with the Jeddah-based Tamer Group, highlighting that it deliberately chose to partner with a regional player because it would allow its e-commerce platform to continue to grow in key regional markets and expand its digital footprint.
Jeddah-based Tamer Group is one of the largest regional healthcare distributors with annual turnover of 9.2 billion Saudi riyals and a compound annual growth rate of 11%.
"The deal coincides with our 100 year anniversary -operating as the largest healthcare distributor in the region, and major player in FMCG, logistics and beauty care- and this is a further, hugely significant, milestone for Tamer Group," said Ayman Tamer, Chairman of Tamer Group. "We believe that e-commerce is the future for the GCC. As a major player in the FMCG space, e-commerce is no longer an option, but a necessity. 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."
Founded in October 2011 by CEO Ataya and COO Khalil, Mumzworld has been enjoying a 10x growth over the last five years. In addition, Mumzworld is a preferred partner for over 5,500 global and regional brands, with 250,000 products and including a proprietary, exclusive distribution of over 15,000 leading international products. The strong potential of Mumzworld in the mother, baby, and child market -which is worth over US$10 billion in the MENA region and its online segment growing approximately 39% per annum- has been attributed to the region's young population, strong birth rates, robust purchasing power, and highly digitized consumers.
"Over the last 10 years, Mumzworld's founders have demonstrated their steadfast commitment to creating the leading mother, baby, and child e-commerce business in the Middle East, with a community of over 2.5 million mothers," said Noor Sweid, General Partner at Global Ventures, and one of the first investors in Mumzworld. "Its founders have become true pioneers and leaders in an extremely competitive space and shaped the ecommerce sector in the region."
When asked about her experience of negotating this deal during the COVID-19 pandemic, Ataya is firm that the fundraising processes and mergers and acquistions did not stop just because the whole world has had to adapt to a new way of working. "As pioneers and innovators in mother, baby, and child e-commerce in the Middle East, we are naturally comfortable to embracing new challenges," she says. "Good business rapidly adapt and move on. My advice to other entrepreneurs would be to never be scared of innovation. Run towards it, not away from it. Much better to get there first, than be late to it. This is what Mumzworld has always done, and it has served us very well!"
Ataya concludes by saying that the Mumzworld team has big plans for the future. "This transaction will give Mumzworld access to a large, committed pool of capital allowing us to supercharge our growth," she says. "We will 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. We are intent on digitizing 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."