MarkaVIP: Fastest Growing E-Commerce Firm in the Middle East

An interesting press release released by MarkaVIP a few days ago, that I just stumbled across. The claim is a bold one.

The release going out via MarketWire, the strategic office in San Francisco, the growth trajectory and the an inkling of market rumours all point towards a classic play for additional funding or squaring up to be bought out. See: Gonabit.

My view on the numbers:

  • Seven digits could mean anything from 1,000,000 to 9,999,999.
  • A 3% conversion rate on 700,000 members is 21,000 buyers
  • Average transaction value stated is USD 140
  • Gross Quarterly Revenue 2011 Q3: USD 2,940,000
  • The release isn’t clear whether the average transaction value applies to UAE purchasers or whether it’s an average across the entire customer base
  • Let’s pare the revenue number down to USD 2,500,000 just in case.
  • Gross margin of 40%? = USD 1,000,000.
  • Net line after paying for 120 employees across six offices and other costs?

Very interesting numbers. Bodes well for online in the region.

If the business is cash positive, I would be tempted to let it grow via it’s current cash flow rather than considering further funding. But I’m just speculating after all.