Ronaldo Mouchawar: How I created Souq.com


  • Share via facebook
  • Tweet this
  • Bookmark and Share
Ronaldo Mouchawar co-founded Souq.com in 2005 alongside Jabbar Internet Group’s Samih Toukan and Hussam Khoury.

Ronaldo Mouchawar co-founded Souq.com in 2005 alongside Jabbar Internet Group’s Samih Toukan and Hussam Khoury.

Ronaldo Mouchawar is standing at the entrance of Souq.com’s cavernous warehouse in Dubai’s Al Quoz district, getting patted down by one of his own security staff.

“There’s always rumours flying around,” the chief executive smiles, batting away a question about a recent report that suggested his firm might be bought by American internet leviathan Amazon. “You see, we touch on so many people.

“There was a recent study in the UAE that 50 percent of online shoppers have bought on our site, and we know from our traffic that 50 percent of the population come to the site once a month.”

Perhaps it’s not surprising that the only route in and out of the Souq.com fulfillment centre looks more like an airport security barrier than a passageway. Despite only being opened just over a year ago, the warehouse is packed to the rafters with flat-screen TVs, tablets, clothing, diapers and jewellery.

For Souq.com itself, it’s not just products on the shelves that are starting to stack up — the numbers are looking pretty good as well. It’s by far the Middle East’s biggest e-commerce site, and quite possibly the region’s biggest website full stop. It sells well over 200,000 products, with a network of almost 75,000 traders. It grew last year by 170 percent and has expanded ten times over in the last two years alone, with around 22 million visits last month.

Small wonder, then, that investors have been beating a path to the firm’s door. Launched in 2005 as an auction site linked to internet portal Maktoob, the site has already raised $150m in financing, with $75m received from Naspers just two weeks ago. With Naspers already having a 36 percent stake in the company prior to that investment, and with the South African firm remaining a minority partner, that deal values Souq.com at $577m, at the very least. Not bad for a firm that started out with only five employees less than a decade ago.

But you get the impression from Mouchawar — a tall, affable Syrian who co-founded the site alongside the Jabbar Internet Group’s Samih Toukan and Hussam Khoury — that the story is just getting started.

“If you look at what’s really transacted online as opposed to offline in the region, we still have a huge gap to fill,” he says. “There’s 1.5 to maybe 2 percent in this market sold online, whereas elsewhere in the world is double digits — in the UK, it’s maybe 18 percent.

Article continued on next page...

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

Posted by: Wael

Rob yes people are still using Souq, heavily and increasingly. True I also heard of some operational/logistical problems but the thing guys Souq has grown exponentially and they are doing their best to cope with the increase in demand. They are always on top of solving their issues as their direction is bringing value to its consumers.

Being from the region and living in UAE I tend to feel proud of having such a locally built monster e-commerce site.

The new injection of $75 million is not to save them from falling under but rather simply to take them further. No investor would throw big money on a dying business. The footfall is always something that brings challenges to any business or even city. The bigger challenge is how they deal and fix such issues. Let's hope Souq will look better and better in the coming year.

Posted by: turk971

I have been one of their repeat customers and yes there are good deals in the site. However I would like to point out that the main issue with them right now that they need to address immediately is DELIVERY TIME. I always have issues with delivery time whenever I order goods from them. I have raised complaints in almost all my purchases for the same reason. It seems their partner in product physical delivery is not serious enough to meet this CUSTOMER EXPECTATION. In the long run if souq.com will not address it, they will continue to loss customers to competition. Already I have ordered goods from their major competitor in UAE and never had the same issue with them. For now, I go back to souq.com only when the product I want is not available with their competitor.

Posted by: Expat

Online market in Dubai is very poor.
I never dealt with souq.com .. but there is definitely a great potential in this market.

Posted by: mohan

I continue to love the site, there is a good range of products available and decent prices.
never had any problems dealing with them.

Posted by: Syed Muhammad Hussain

I ordered laptop from them on 26th March and it is 13th April now, neither I have received the laptops nor my money back.

I have called them several times but to no avail.

Posted by: turk971

I suggest never use credit or debit card when purchasing online. Always opt for COD (Cash On Delivery) that way you don't need to worry when the goods never reach you. This is how I do my online purchasing all the time.

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Making Connections: Lou Lou Khazen Baz

Making Connections: Lou Lou Khazen Baz

In the space of just two years Nabbesh has grown from a bold...

2
The politics of big data

The politics of big data

The UAE may be one of the fastest adopters of e-government initiatives...

Gateway to a new era

Gateway to a new era

Could Telr be the answer to start-ups’ prayers? The new three...

Most Discussed