KSA-based Tamer Group acquires majority stake in Mumzworld

KSA-based Tamer Group acquires majority stake in Mumzworld 

By: Abu Dhabi SME Hub

The transaction will give Mumzworld access to a large, committed pool of capital that will allow the business to supercharge its growth.

Mumzworld, the largest mother, baby & child (“MBC”) e-commerce platform in the Middle East, has announced that it has signed a Sales and Purchase Agreement with Tamer Group of Saudi Arabia, for Tamer’s proposed acquisition of a majority stake in Mumzworld.

Tamer Group is one of the largest regional healthcare distributors with its consumer and nutrition divisions and logistics services. Tamer’s annual turnover is SAR 9.2 billion ($2.45 billion) with a CAGR (Compound Annual Growth Rate) of 11%.

The proposed transaction follows ten years of stellar growth by Mumzworld, founded in late 2011 by CEO - Mona Ataya, and CCO - Leena Khalil. The company has demonstrated how to build a scaled e-commerce vertical efficiently with gold standard metrics and utilizing relatively limited resources.

Mumzworld’s choice to partner with a regional player is a deliberate one, as it allows the company to continue to grow in key regional markets and expand its digital footprint leveraging the many synergies and complementary strengths of Tamer. The transaction also bolsters the significance of digital channels for large conglomerates in the region.

The huge confidence in, and commitment of Mumzworld’s founders and its key leadership, means they will continue to drive the business, sit on the board and remain material shareholders.

Whilst Mumzworld will retain a high degree of autonomy - including retention of the full Mumzworld management team and Mumzworld branding - the combined platform has scope for enormous synergies in procurement, logistics and infrastructure.

The transaction will give Mumzworld access to a large, committed pool of capital that will allow the business to supercharge its growth. Tamer will also help further institutionalise the business, and use Tamer’s portfolio companies to spur organic growth of Mumzworld.

The regional MBC market is worth over $10 billion, with the online segment growing approximately 39% per annum, yet online penetration remains in the single digits. A young population, strong birth rates, robust purchasing power and highly digitized consumers with growing e-commerce adoption will continue to drive growth in the online segment particularly in Saudi Arabia - where ecosystem enablers grow, become more efficient and seize the white space market opportunity.

Mumzworld Fact Sheet

The scale of the Mumzworld brand is shown by:

  • Market leader status in a high-growth sector with strong unit economics;
  • 10x growth over the last five years;
  • The largest regional community of 2.5 million mothers who drive strong repeat business;
  • Preferred partner for over 5,500 global and regional brands, 250,000 products;
  • Proprietary, exclusive distribution of over 15,000 leading international products; and
  • The go-to platform for global brands wanting to tap into the lucrative Middle Eastern consumer

The transaction is a significant win and achieves several regional firsts:

  • First regional, homegrown e-commerce company acquired by a Saudi, strategic giant;
  • Mumzworld - a company built for the region, acquired by the region – now set for an expanded footprint
  • First, regional woman-led e-commerce transaction – the leaders of Mumzworld were pioneers in the space and have been instrumental in shaping the changing landscape and disrupting the ecosystem

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