UAE's Etisalat completes acquisition of elGrocer
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UAE’s Etisalat completes acquisition of elGrocer

UAE’s Etisalat completes acquisition of elGrocer

The acquisition is expected to complement Etisalat UAE’s existing marketplace services under the Smiles brand

UAE’s Emirates Telecommunications Group Company said on Friday that it has completed the acquisition of elGrocer DMCC.

In November last year, Etisalat announced plans to acquire 100 per cent of the online marketplace for groceries founded in 2015.

Read: UAE’s Etisalat Group to acquire 100% of elGrocer

The acquisition value of elGrocer will not exceed Dhs38m (including up to Dhs30m for 100 per cent of the shares and the dirham equivalent of $2m for the repayment of a SAFE note, representing the recently contributed capital by a third party) The transaction is paid by cash.

Etisalat said on Friday that Smiles users in the UAE can now avail of a limited-time deal of 50 per cent off (up to Dhs50) on online groceries from any outlet on elGrocer.

elGrocer has over 500 outlets on its platform and more than 120,00 products listed.

The UAE retail e-commerce market reached $3.9bn in 2020, a 53 per cent year-on-year increase.

Also, e-commerce accounted for an 8 per cent share of the retail market during the same year, analysis from Dubai Chamber of Commerce and Industry revealed.

The acquisition of elGrocer is expected to complement Etisalat UAE’s existing marketplace services under the ‘Smiles’ brand, which includes online food delivery, lifestyle offers and the ability to earn and redeem points at more than 7,000 outlets across the UAE.

“Following the successful launch of the Smiles food delivery platform at the beginning of 2021, the ability to offer our customers online grocery services presents an exciting opportunity to enhance our Smiles offering for UAE consumers and 2.7 million existing Smiles members,” said Khaled ElKhouly, chief consumer officer of Etisalat UAE.

“We strongly believe in bringing elGrocer on board, we will be able to empower our customers by providing more tailored and unique propositions, extending the possibility to earn and redeem Smiles points on online grocery transactions and offering exclusive discounts.”

Raed Hafez, CEO of elGrocer, added: “One of the first steps we are taking is a major elGrocer app update that make the shopping experience easier and faster with many engaging services and features such as quicker deliveries, digitised shopping list search, shoppable recipe from chefs and brands, click and collect service, and more. This will soon be complemented by a major value for customers, allowing them to earn and redeem Smiles points on elGrocer orders.”

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