Germany-based incubator program Rocket Internet is planning to team up with telecom provider MTN Group to form Middle East Internet Holding, to develop e-commerce firms in the region
Rocket Internet, the largest incubator program in the world, is partnering with telecom provider MTN Group to form Middle East Internet Holding (MEIH). The joint venture will develop e-commerce firms in the region, wrote VentureBeat.
MTN plans to pour in $410 million into MEIH and Africa Internet Holding, a company that backs Rocket's internet firms in Africa. The deal indicates that Rocket has a strong interest to grow its base in the Middle East, the report said.
Rocket Internet has started over 100 firms all across given continents. The super incubator takes mainly e-commerce models and establishes them in emerging markets. The firm's strategy is to shower these companies with massive investments until they gain dominance in the given area. Rocket Internet commonly invests nine-digit amounts in each transaction, the report stated.
The Middle East and North Africa has a combined Internet user base of 110 million. About 30 million are already buying online. In 2015, e-commerce sales are estimated to climb up to $15 billion, from $9 billion in the previous year. That is just a small chunk of the market in the Middle East, a wealthy place where the population is used to spending for luxury, VentureBeat reported.