UAE – Mubasher: ASA Ventures, a Dubai-based venture capital firm, plans to launch ZON, the first fully decentralized mobile-based e-commerce network in the region.
Zon is set for launch in the UAE by 2020 after its pilot test has been successfully completed, according to a press release.
Arif Saiyad, founder and CEO of ASA Ventures, commented: "For the past 4 years, we have been using proprietary machine-learning algorithm to collect and analyze data, which has made it possible to fulfill orders using real-time inventory information across every product category, regardless of the size of the seller."
"The key aspect of ZON is its decentralized model that allows for in-situ order fulfillment and real-time image-based validation of stock. We are launching in the UAE and will look to grow aggressively in other emerging markets thereafter," Saiyad added.
Moreover, ZON has secured a seed fund of around $5 million in from Arif Saiyad that has been deployed for market research, product development, network retail expansion, and pilot testing.
“The network has already on-boarded, tested and trained over 30,000 sellers since February 2019 - nearly twice the number of sellers active on the country's largest online marketplace,” ASA Ventures said.
More than 16 million stock keeping units are currently registered on the platform of ZON through its seller network, which is much higher than any other online marketplace in the country.
ASA Ventures is now in its Series A fundraising round expected to be closed by 15 October.
It is worth noting that the UAE Ministry of Economy has estimated that e-commerce accounts for 10% of total sales in the country, with a huge potential of almost 100% ownership of smartphones and internet penetration.
Furthermore, e-commerce spending in the UAE grew by 48% in 2018, according to data collected by UAE-based Mashreq Bank.
In 2918, a BMI Research report projected that the region's e-commerce market would grow to $48.6 billion by 2022, up from an estimated $26.9 billion in 2018.
