The two e-commerce giants Amazon & Flipkart back out from US $1 billion deal to acquire Dubai-based Souq.com after disagreeing over price, according to sources. Souq.com also said to be in talks with UAE based Majid Al Futtaim Group.
Souq.com carries 1.75 million products which are delivered in nations like United Arab Emirates,Saudi Arab, Egypt. A year ago Standard Chartered, also a investor of Souq.com announced that After a $275 million founding round in February 2016 Souq.com had become the highest valued internet company in the Middle East. Tiger Global Management and South Africa’s Naspers Ltd.Souq.com’s are currently investing in Souq.com
Amazon are known to be in talks with Dubai based group from December 2016. Amazon was curious about the deal but disagreeing on price decided to backout from the deal. Indian rival Flipkart also be said to step back. Flipkart acquired online fashion store Jabong.com a year ago and may be to tackle its financial problems decided to step back