News
Big data more important than ever as e-commerce market in MENA booms
The e-commerce industry has been growing dramatically in the Middle East lately with an average revenue of $39 billion in 2015; and a projected market size of $51 billion by 2017 – according to the latest research. This has been the main motive driving A15, the leading technology investor, to invest 2.5 million EGP in MENA Commerce, the region’s first big-data company in the e-commerce retail industry.
Big data is a space that hasn’t seen much activity in the region. The main premise is that it uses sophisticated analytics algorithms to analyze the enormous amounts of data currently available through for example consumer purchasing habits. “A15 is keen on investing in big data companies and believes there is much that we can learn about how we here in the region behave and in that lies an opportunity to make more informed decisions and generate greater returns not just for A15 and its companies but for the region,” said A15 CEO, Fadi Antaki.
Mena Commerce is a technology startup focusing on building a bridge between content and commerce. it is using big data to map out consumer behaviour and help e-commerce and traditional retailers target their consumers more effectively thus generate higher returns on their advertising spending. Their two flagship products ShopShopMe.com and AdRelated.com (patent-pending) cater to both ends of the spectrum: search and discovery. With around 40 team members, most of whom are in engineering and data science, MENA Commerce is building unique intellectual property out of MENA that can be used by clients around the world.
“Mena Commerce is tapping into a very lucrative and a fast growing area which is e-commerce. Being players ourselves in that area with strong experience, we saw an opportunity to add lots of value to the Mena Commerce team’s work.” Said A15’s CEO, Fadi Antaki.
Having supported and owned leading digital publishers, such as Arab Finance, Masrawy, and YallaKora and with Connect Ads still in its arsenal, A15 can certainly bring its previous publisher experience and digital advertising business experience to the equation to support Mena Commerce’s growth. “A15 has extensive digital publishing experience and a vast publishing network as well as Connect Ads’ digital agency power & leadership. Combine these two things and we can really accelerate Mena Commerce’s growth in the region.” Added Antaki.
“The investment by A15 will be instrumental in helping us scale faster, and work closely with other A15 companies especially Connect Ads as there is perfect synergy between us. The Middle East market is hungry for our services especially with the e-commerce boom we are witnessing.” Said Moustafa Mahmoud, CEO of Mena Commerce.
Egypt tops all the Arab countries transacting online with 15.2 million active buyers; along with UAE (6.8 million buyers), KSA (10.6 million buyers) & Kuwait (2.4 million buyers). In a report published last year by Payfort, it is estimated that Egypt’s e-commerce market will almost double in size reaching $2.7 billion by 2020, from $1.4 billion in 2014.
Lendo, a Saudi Arabia-based Shariah-compliant crowdlending marketplace, has signed a Memorandum of Understanding (MOU) today with J.P. Morgan to improve access to financing for small and medium-sized enterprises (SMEs) across the country.
The MOU was signed during 24 Fintech, a premier fintech event that brings together industry leaders, innovators, and investors in Riyadh.
J.P. Morgan and Lendo are working together on potential opportunities to support the SME sector in Saudi Arabia in growing and sustaining the remarkable demand in this market.
“This strategic collaboration with J.P. Morgan, a pioneer in the financial industry, marks a significant milestone for Lendo,” said Osama Alraee, CEO and co-founder of Lendo. “By combining our strengths, we’ll deliver cutting-edge financial solutions to SMEs, supporting their growth and contributing directly to the realization of Saudi Arabia’s Vision 2030.”
The SME financing landscape in MENA presents a substantial market opportunity as limited financial access continues to restrict the growth of the region’s businesses, with commercial banks hesitant to issue loans to SMEs at scale, resulting in a high percentage of declined financing requests annually.
The total SME financing gap in developing countries is estimated to be approximately $5.2 trillion, according to the International Finance Corporation (IFC).
Lendo’s debt crowdfunding platform aims to bridge the financing gap for SMEs, aligning with Saudi Vision 2030’s goal to significantly expand SME lending from 4% in 2018 to 20% by 2030.
According to the latest available report from the Saudi Central Bank (SAMA), the total value of debt crowdfunding in Saudi Arabia surged from SAR 1.4 million in 2019 to SAR 771 million in 2022, marking a remarkable growth.
Lendo raised SAR 132 million ($35.2 million) in total funding from leading investors, including the most recent Series B led by Sanabil Investments, a wholly-owned company by the Public Investment Fund (PIF).
Since its inception in December 2019, Saudi fintech Lendo has processed over 5,000 financing transactions on its platform, providing over SAR 2 billion ($600 million) in financing to SMEs and generating SAR 280 million ($74 million) in returns for investors.
TA Telecom, a prominent player in the Middle East’s tech sector, has unveiled AnteThink, an AI-driven tool designed to enhance decision-making processes for individuals and businesses alike.
With a history of influencing the tech landscape through various initiatives, including advanced mobile solutions, high-volume payment platforms, and ventures in e-commerce, fintech, and analytics, TA Telecom has carved a niche for itself. Serving a vast user base of 40 million and processing an impressive 15 billion transactions across its platforms, TA Telecom has cemented its position as a tech industry leader, with some of its ventures achieving the status of Y Combinator companies.
Established in 2000, TA Telecom has emerged as a prominent player in the technology sector. With over 40 million users and processing 15 billion transactions annually, TA Telecom has made a notable impact. Recognized for its contributions by the Financial Times and featured on Deloitte’s list of fastest-growing tech companies in EMEA, TA Telecom is known for its adaptability and forward-thinking approach in the ever-evolving global tech landscape.
Sameh Ibrahim, CEO of TA Telecom, highlights the potential of AnteThink: “AnteThink reflects our commitment to leverage technology for practical impact. It aims to provide clarity and confidence in decision-making, whether in the professional or personal sphere. AnteThink is a tool that can empower startup founders, executives, and individuals to make more informed choices, alleviating the stress and uncertainty often associated with critical decision-making.”
Mostafa Ashour, CEO of Y Combinator-backed startup NowPay, shared his perspective on AnteThink: “AnteThink transformed our strategic planning, allowing us to explore various scenarios and prepare for different outcomes. It has strengthened our decision-making process, helping us navigate the complexities of the business landscape.”
AnteThink embodies TA Telecom’s commitment to innovation, focusing on supporting the startup ecosystem. The tool is tailored to help leaders and executives navigate the complexities of business management and strategic development by providing a clear picture of potential outcomes.
Key Features of AnteThink include:
1. Second Order Mode: Offering a comprehensive analysis of broader impacts, fostering a strategic mindset for long-term success.
2. Optionality Mode: Enabling detailed evaluation and comparison of different choices to ensure decisions align with strategic objectives and values.
3. Inversion Mode: Focusing on identifying and mitigating potential risks, thereby strengthening risk management strategies.
Credit: Antethink
AnteThink’s advanced AI technology aims to assist decision-makers with insightful analytics, offering guidance through the decision-making process.
Selina Bieber, the Senior Director of Global Markets at GoDaddy, has predicted a significant increase in Egypt’s e-commerce revenue. By 2028, it could reach $9.88 billion.
Godaddy is forming strategic partnerships and launching initiatives to help local entrepreneurs. These efforts align with Egypt’s digital transformation goals and its Vision 2030.
In an interview with the Arabic financial news “Amwal Al Ghad,” Bieber spoke about GoDaddy’s plans and how they match Egypt’s 2023 strategy. She highlighted the company’s aim to provide effective, easy-to-use digital tools and services. By 2024, GoDaddy wants to serve more customers in Egypt by making its digital tools more widespread.
The company is working closely with the Egyptian government, especially the Ministry of Planning. They are offering training programs to improve the digital skills of startups and existing businesses. GoDaddy’s services in Egypt include domain registration, web hosting, e-commerce solutions, and digital marketing tools.
Recent surveys support Bieber’s positive outlook for e-commerce in Egypt. They show a clear trend towards digital strategies among small businesses. Many are realizing the importance of having an online presence for their growth and success.
As GoDaddy continues its partnerships and supports government digital initiatives, its influence on Egypt’s digital landscape is growing. The company is committed to sustainability and reducing its carbon footprint. It aims not just for business growth but also to contribute to a sustainable and thriving digital economy in Egypt.
The 2028 projection indicates a vast potential for e-commerce, with GoDaddy playing a key role in this digital evolution.
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