UAE's Etisalat Group to acquire 100% of elGrocer
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UAE’s Etisalat Group to acquire 100% of elGrocer

UAE’s Etisalat Group to acquire 100% of elGrocer

Founded in 2015, elGrocer is an online marketplace for groceries operating across the UAE

UAE telecom operator Emirates Telecommunications Group Company (Etisalat) has signed an agreement with elGrocer to acquire 100 per cent of elGrocer DMCC, it announced on Thursday.

The deal is to support Etisalat’s digital ambitions by  unlocking synergies that drive a diversified and integrated product portfolio, a statement said.

Khaled ElKhouly, chief consumer officer of Etisalat UAE, said: “Online shopping has redefined retail in the last decade with an increasing number of consumers moving to online transactions. We have been continuously working on new, innovative digital services and this acquisition is in line with our strategy to empower consumers, enhance engagement through our digital marketplace platform and drive diversification of our business.”

elGrocer’s online presence in the country will complement Etisalat UAE’s existing marketplace services under the brand ‘Smiles’ including online food delivery, lifestyle offers and the ability to earn and redeem points at more than 7,000 outlets across the country.

Raed Hafez, CEO of elGrocer, said: “We are excited to join forces with Etisalat team giving us the opportunity to tap into their digital capabilities, advanced network and services to accelerate our strategic expansion plans. Combining our strengths backed by Etisalat’s strong base will give us full strength to capture the market opportunities ahead.”

Founded in 2015, elGrocer is an online marketplace for groceries operating across the UAE.  It brings together retailers and specialty stores on a single platform with more than 500 outlets and 120,000 listed products.

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

Read: UAE retail e-commerce market reaches $3.9bn in 2020

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.

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