Dubai-based mum and baby e-commerce platform Sprii has gone into liquidation, citing cash flow issues.

The website, founded as Mini Exchange in 2014, before rebranding to in 2017, made the announcement to creditors and suppliers by email yesterday, according to technology and start-up website Menabytes.

Child’s play? Mother and baby website Sprii goes into liquidation

Menabytes cited a letter from founder and CEO Sarah Jones who said: “As a result of our inability to raise further capital to support the ongoing trading of Sprii, coupled with the conclusion of an unsuccessful campaign to sell the business, I have been forced to take significant steps that will impact the future of the business.”

Jones’ letter suggested that a previously discussed sale of the website may still be possible but said she would be attempting to reassign the company’s team members. 

The letter continued: “This is an incredibly sad day for all stakeholders in Sprii. If a sale of the business is not possible, I will be working hard to rehouse all of our team. I appreciate that many of you will feel pain here too, and I will work tirelessly with the Liquidator to ensure the best result is achieved for all creditors.”

Sprii announced that it had raised $8.5 million in funding last year, saying it expected its sales to triple from 2018 to 2019, taking the total raised at that point to $13 million, but it was not enough to stay afloat in the UAE’s increasingly competitive parenting e-commerce market.  

Frontrunner Mumzworld, founded in the UAE 2011 by Mona Ataya, before expanding into Saudi, raised $20 million in 2018.

Noon, a joint e-commerce venture between Emaar’s Mohamed Alabbar and Saudi Arabia’s Public Investment Fund competes for online parenting spend. Homegrown outlets also face challenges from internet giant Amazon, as well as UAE-based supermarkets which have ramped up online ordering efficiency since the advent of the COVID-19 pandemic.

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)


Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020