Reuters 26 September 2012
J.P. Morgan Chase (JPM.N) and Blakeney Management have invested over $20 million (12.36 million pounds) in a Dubai-based e-commerce firm which sells designer clothing, a sign that global investors are interested in the Middle East’s nascent online shopping sector.
Namshi, a start-up launched late in 2011, aims to benefit from growth in the number of Internet users around the region.
“We realised very early that there is a gap in the market for fashion e-commerce in the region,” said co-founder and managing director Muhammed Mekki, a former executive at consultancy McKinsey & Co, who founded Namshi with three other partners.
“It’s a proven business model in most other developed markets and the investment signals international investors see immense scope for the business in the region,” Mekki told Reuters on Wednesday.
Namshi, which also provides shoes and accessories, offers over 400 international brands and delivers to customers in the Gulf region. It plans to use the investment to expand its service, mainly in Saudi Arabia, its biggest market.
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