A leading e-commerce company that sells bulk consumables and licenses its software to retailers announced a new partnership that increases its international expansion.
What Happened: Boxed, which is merging with Seven Oaks Acquisition Corp (NASDAQ: SVOK), is partnering with 786 Holdings Limited.
The partnership will see 786 Holdings use the proprietary technology of Boxed for e-commerce software and services technology. 786 Holdings will use the software to build out its B2B operations in the Middle East North Africa region, including the Kingdom of Saudi Arabia, the UAE, Egypt, Oman, Qatar, Bahrain, Turkey and Kuwait.
The partnership will launch in the first half of 2022 with a rollout in the Kingdom of Saudi Arabia, a grocery market expected to grow to $173 billion by 2025 according to Ken Research Private Limited and RedSeer Consulting.
“As we continue to expand into international markets, we understand the importance of having the local operational infrastructure, expertise and network supporting us,” said Boxed co-founder and CEO Chieh Huang.
Why It’s Important: Along with its own bulk good e-commerce business, Boxed has shown its software and services offering attract several partnerships.
“There is a massive opportunity for digital penetration in the MENA markets driven by a young tech-literate population presenting an enormous whitespace opportunity for Boxed to capture,” Huang said.
The Kingdom of Saudi Arabia has online sales penetration of 1.3% for online grocery. Other emerging markets have similar share and can be easily disrupted.
Boxed has a partnership with Aeon for its software and services that is expanding into Vietnam and other Southeast Asian markets. The partnership began with a partnership in Malaysia.
Boxed anticipates its SPAC merger to be closed in the fourth quarter. The company will trade on the NYSE with ticker BOXD if the merger is approved.
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