Across Dubai and the Middle East a paradigm shift has taken place, making space for entrepreneurs, startups and innovations.
The MENA region is full of budding entrepreneurs showing huge potential in building digital solutions for local problems.
With increasing support from government and local VCs it’s the right time to be in the mix. We’ve selected five Middle Eastern companies making waves in their respective spaces, some new and others well established in their market, but all worth keeping an eye on.
Namshi
Founded in 2011 Namshi is the wonder-child of Rocket Internet and a first mover in the ecommerce space in the UAE. Rocket Internet has a reputation for launching and growing tech companies, sometimes in quite an aggressive manner, as was the case with Namshi and its explosive growth.
The introduction of Namshi reinvented ecommerce in MENA and provided the market with choice and convenience for the first time, although this came with its own set of challenges – including the relative unawareness about ecommerce amongst the target audience. The timing of market entry fell perfectly in-line with the expanding middle class, higher disposable incomes, urbanisation and lifestyle changes in the region. The $20 million round of funding from J.P. Morgan also contributed to the market domination Namshi enjoyed which allowed the company to double month on month from the onset, barely able to keep up with their own rate of growth.
However, Namshi successfully managed their rapid growth, quickly becoming the leading ecommerce retailer in the Middle East. Online shopping in the Middle East today continues to evolve rapidly and has grown by 1,500% over the last decade, although the market is still in its relative infancy. It will be interesting to see what processes and initiatives Namshi will bring to the table to cater to this expanding market, and how they will increase the value proposition to their existing customers.
Souq.com
Often called the Amazon of the Middle East, Souq.com caters to the needs of local markets where thousands of buyers and sellers trade products over a trusted platform; and again is moving consumers from offline to online.
Souq.com started out with just five employees less than a decade ago but now directly employs 1,000+ people. But when you take the network of partners, suppliers and couriers into account this number rises to over 7,000 people, not to mention the 75,000+ sellers, many of which make a living from the website. Hence it’s a hugely important and influential company in the region.
2014 saw new initiatives and technologies designed to increase value for its customers and deepen the relationships. The latest cash injection of $75m will be invested into customer relationship technology and improving the backend of the website, which goes hand in hand with attracting top tech talent.
Chief executive Ronaldo Mouchawar explains: “We want to become a place where people aspire to come and work, and for me that would be just as much a win as the number of transactions, or the value of the company.”
The rest of the year and beyond Mouchawar seeks to Think Big – big new category launches, big growth in market place, big new technology and big improvements in fulfilment; attracting local and foreign talent will therefore to be key.
MENA Commerce
The startup scene in Dubai is still at a relatively early stage, but spreading steadily. With a lot of government support and the development of many local VCs there isn’t a better time to be an entrepreneur in Dubai.
MENA Commerce, a local startup, is the region’s first retail focused, big-data company. Through their two flagship solutions, Bivine and ShopShopMe.com, MENA Commerce (MC) support’s online and offline retailers in reaching new heights of success.
What is interesting to note is how the start-up culture of Silicon Valley has transferred over to the Middle East and influenced start-ups there. MENA Commerce is a clear example with the organisation emphasising the importance of having a team of co-founders – rather than a hierarchy of employees. From knowledge sharing sessions to a 20% time policy like Google (where each team member can invest 20% of their time into personal projects) the culture at MC reflects many of the same values as Silicon Valley.
This type of culture is key in attracting top tech talent into the company. As well as a culture of empowerment MC offers each team member shares in the company, hence the success of the company is also their own personal success.
“We don’t recruit people looking for a steady pay check and a relaxed work atmosphere. Our team are the warriors, the ones who are fighting to build a better future for the world.” says MC founder Moustafa Mahoud.
This empowered team is the force driving the company forward. A few weeks ago it was announced that MC would launch the world’s first contextual product advertising technology (it’s Google AdSense for Products!), the region’s first affiliate network, the region’s first visual search application (allowing shoppers to search for products using their mobile camera). Four acquisition offers have been declined this year alone. The plan instead is to build something even bigger and to democratise retail throughout the region, becoming the first stop for every shopping journey – watch this space!
Intigral
The basics: Established in 2009, Intigral is an end-to-end solution provider focused on delivering digital media content services to regional telecommunication operators, offering a one-stop shop for the region’s operators, easing their transition into the digital media space. Intigral’s aim is to enhance the digital experience of consumers irrespective of their access channels, be it mobile, IPTV or web.
However, it’s Intigral’s Afkar.me incubator that places Intigral in Global M’s top 5 companies to watch. Afkar.me (meaning ideas) aims to support start-ups building digital products and services. Unlike other Dubai based incubators, Intigral’s Afkar.me will not take equity, but will offer US $20,000 in seed investment as a loan.
Victor Kiriakos, senior manager of Strategic Products, states “we’re not looking for a return on investment; we’re looking to enrich the ecosystem.”
So how does the incubator work? Akfar.me focuses on supporting start-ups to build products and services tailored to the needs of Intigral’s existing clients. Furthermore, successful start-ups who meet Intigral’s criteria are welcomed to Intigral’s offices in either Dubai or Riyadh for three months, in order to develop both their skills and their product. These startups will gain easy access to large clients in Saudi Arabia and Africa, especially in the telecommunications sector. As a joint venture between Saudi Telecom Company (STC) and All Asia Networks (ASTRO) Intigral is set up to plug its startups directly into opportunities in Saudi Arabia, Africa, and Asia.
Dubizzle
Be it a 300-plus seater aircraft, a limited – edition limousine, a career changing job or a lampshade, Dubizzle has it all. Dubizzle.com is the leading classifieds website for users in the Middle East and North Africa, with over 360 million page views per day. Since its launch in 2005, dubizzle.com has become the number one platform for users to buy, sell, or find pretty much anything.
Over the past two years Dubizzle has successfully transitioned from a local business to a regional one. As a believer in the lean start-up philosophy, Dubizzle’s ability to stay agile and maintain a start-up feel when moving into a middle sized company is exemplary. It is this aptitude which has contributed to making Dubizzle the leader in its field.
To do this Dubizzle realised they had to get back to their founding roots and accept a culture of trial and error. This willingness to openly make many mistakes is a hugely effective way of empowering the team. Once this culture has been enforced the decision making power can filter through the whole team and things can start happening much the same as they would in a startup, despite being a large company.
Currently operating in 11 countries in the Middle East the present focus is driving business forward in these markets. Dubizzle’s culture is one which encourages innovation and intrapreneurship, where good ideas can come from anywhere, but the question is will the culture be maintainable as the company expands. If successful there will be a leaf or two to be taken from Dubizzle’s book.