Two Saudi Arabian companies have acquired a 51 percent stake in UK-based online fashion retailer VogaCloset.
Franchise retailer Fawas Abdulaziz Alhokair and shopping center developer Arabian Centers Company (ACC) purchased the shares based on a valuation of $60 million.
They will inject $12 million into VogaCloset to help develop its presence in the Saudi market, grow its customer base, and integrate their own brands onto the platform.
The company will continue to operate independently with its current leadership team, although a board of directors will be formed to oversee operations, made up of members nominated by ACC, Alhokair, and executive shareholders.
VogaCloset’s core market is Saudi Arabia, where it specializes in offering European brands to Arab consumers. It has more than 12 million customers in the Middle East.
“This strategic investment in a sizeable and profitable regional e-commerce player is the most direct route for Alhokair to extend its leadership position in its core Saudi market – from offline to the online space, while safeguarding our competitive market position,” said Marwan Moukarzel, Chief Executive Officer of Alhokair in a statement.
As part of the deal, ACC will offer tenants in its shopping centers the opportunity to list their products on the online platform.
New developments to the product are also underway, including customer finance and loyalty programs and in-store pickup.
“In line with our ambition to create Saudi Arabia’s first specialized digital retail platform, the partnership with VogaCloset will greatly enhance convenience and engagement for tenants and customers,” added Faisal Al Jedaie, Chief Executive Officer of ACC.