PHOTO
UAE’s Emirates Telecommunications Group Company (Etisalat Group) has signed an agreement to acquire Dubai-based online grocery platform elGrocer DMCC, the telecom operator said on Thursday.
The transaction will be funded by cash and support the company’s strategy to diversify its product portfolio, Etisalat Group told the Abu Dhabi Securities Exchange (ADX), where its shares are listed.
“This acquisition will support Etisalat’s digital ambitions by enriching its services, bringing it closer to the daily lives of the consumers and unlocking synergies that drive a diversified and integrated product portfolio,” the disclosure said.
The company did not divulge the value of the transaction.
Founded in 2015, elGrocer operates in seven emirates of the UAE, offering customers access to major retailers and specialty stores with more than 500 outlets and 120,000 products listed.
The GCC’s e-commerce sector has surged since the onset of the coronavirus pandemic, fuelled by strong demand for home deliveries. Revenues in the sector jumped from $18 billion in 2019 to $24 billion in 2020, according to Kearney.
(Writing by Cleofe Maceda; 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 2021
