souq.com

Starting a business is itself a huge challenge and starting in a sector dominated by giants just makes the challenge double-fold. Amazon, undoubtedly, is one of the leading e-commerce company today. It has expanded to almost every part of the world and has become the top e-commerce company.

With a fierce competition already present in the market, a man decides to start his own e-commerce venture, in the middle-east, and just within a year, reaches maximum people in the country. The website was named Souq.com and co-founded by Ronaldo Mouchawar. How he became the most successful self-made businessman? Let’s get to know more about him.

Early Life

Ronaldo was born in Aleppo, Syria, to a merchant father. His father’s business became an inspiration for him to name his e-commerce site. Mouchawar went to Northwestern University in Boston to earn a Master’s degree in digital communications and a Bachelor’s degree in electrical and computer engineering from Massachusetts in the United States. Initially, Mouchawar took a job at the Boston engineering firm. He also worked as a technical and systems consultant in the technology and business management sector at the Electronic Data System (EDS).

Entering into Start-Ups

After completing his education, Mouchawar joined Maktoob, the first successful web portal in the Middle East. He was not quite fluent in English and Maktoob was not looking for the fluent ones. As the web portal was gaining attention and becoming popular in the country, Mouchawar realized the potential of e-commerce business and wanted to create a separate commerce-only website.

Then, in 2006, he started a website called Souq.com. The word means ‘market’ in Arabic and Mouchawar’s hometown, i.e. Aleppo was famous for its souqs. The company was set up in Dubai as UAE had a larger population of young people and could prove a very profitable marketplace for an e-commerce website.

Initially, Souq was launched as an auction website which later was diversified into an automobile and real estate. The business grew pretty quickly and was getting popular. Mouchawar expanded the business to Saudi Arabia and, by the end of 2009, Souq became independent of Maktoob. At that time the website was witnessing 3 million UAE dirhams worth of auctions i.e. the US $1 million.

There was also a time when smartphones were entering the market and more and more people were shifting from their laptop to smartphones. As Souq was available only for the desktops and there was no app developed for it, further growth of the business seemed to be limited. Mouchawar took a smart decision and quickly adapted to the changing technological era. And in 2012, Souq launched its first app. Today, more than 70% of purchases are done using smartphones.

Next big change was introduced in 2010. With Wisam Daoud joining as CTO, Mouchawar decided that Souq would no longer run auctions and classifieds. The company, at that time, had 80% business from the auction and 20% from fixed price. But in May 2010, they closed the auction site. Initially, the company lost most of their transaction but they made for it in around six months and also doubled its revenue each quarter.

Mouchawar, in 2014, launched ‘White Friday’ sales which coincide with the ‘Black Friday’ sale in the US. He explained that ‘Black Friday’ does not make cultural sense in Arab as Friday is the traditional day of prayer. The sale received a thunderous response and raised more than $275 million. At the time of its next White Friday Souq had doubled its sales and witnessed 13 million visitors and around 600,000 products sold during 25th-28th November.

In March 2017, Amazon acquired Souq by paying $580 million in cash.

Personal Life

Ronaldo Mouchawar has received a number of accolades including Gulf Business Industry Awards CEO of the year in 2013 and Entrepreneur of the Year award in 2015. He currently lives in Dubai, UAE.