Riding the e-commerce wave, price comparison site Bkam announces investment from Jabbar
Egyptian price comparison site
Bkam.com has announced its launch in the UAE, following recent
investment from Jabbar Internet Group for an undisclosed
amount.
Bkam is a price comparison website that scrapes data from various
e-commerce sites to reveal the best deals on goods throughout the
Egyptian and now UAE markets. Since its launch in October, the
site has gained a decent amount of traction, now seeing around
6,000 visits daily and 50,000 downloads of its iOS application.
With the investment, which will see Jabbar taking a minority stake,
Bkam plans to launch a marketing campaign, expand in the UAE, and
enter the Saudi market. it will also opening up its platform to
enable offline stores to list their goods by uploading an Excel
spreadsheet. “Advertising in newspapers, or launching a website, is
expensive," says founder Mahmoud Abdel-Fattah. "We offer offline
retailers a solution that’s halfway between creating their own
e-commerce store, and having sellers contact them over the
phone.”
For Jabbar, Bkam is the first minority stake investment it’s made
in awhile, if ever. Now that Souq.com has split from Jabbar Group and
is now managed by Souq Group, and Cobone is wholly
owned by Tiger Global, Jabbar’s portfolio includes ikoo,
Tahadi, Nibras, and Araby.com. In a conversation in March, CEO
Samih Toukan said that Jabbar was looking to ramp back up its
activities, investing in different areas of online and mobile
businesses beyond e-commerce.
In the press release, Toukan states, “We approached Bkam.com
because we saw in their vision the promise of something very
successful in the region,” said Samih Toukan, Chairman, Jabbar
Internet Group. “Their technology is very unique and the team
behind it is committed to growing and developing the concept.”
(Abdel-Fattah also notes that the Jabbar team approached him about
investment after reading our
article on Bkam on Wamda).
Will Souq benefit from Bkam's technology?
As a site designed to boost e-commerce, Bkam could also help boost
the visibility of Souq’s products. (While Souq is not managed by
Jabbar, as mentioned, it is overseen by the directors of
Jabbar).
Yet Abdel-Fattah refutes the idea that Bkam will now have a special
relationship with Souq; it will not feature items from Souq more
frequently than others, he says. “We are neutral. Souq.com will be
like any other website." Sites won’t be allowed to pay to promote
the visibility of their items, either: “If only expensive stores
can afford to promote their items, the user loses out.”
Abdel-Fattah also insists that Souq will also not have unique
access to its database of aggregated price information and consumer
behavior intelligence. “If we release data, we’ll release it to the
public,” he says.
Releasing consumer behavior data to the various e-commerce sites
aggregated on Bkam is also a potential part of the company’s
revenue model; it’s important that e-commerce companies don’t think
that their data is being freely funneled to a potential
competitor.
A final aspect that could benefit Souq is the technology behind
Bkam, which Abdel Fattah says differentiates it from other price
comparison sites.
It’s not just a knack for mobile. From the beginning, Abdel-Fattah
worked with well-known Egyptian software development company
eSpace to build an algorithm
that could automatically group items with variations on the same
name, such as “Samsung Galaxy 4,” or “Galaxy IV.” (eSpace also
worked to help build popular Arabic news aggregator Akhbarak.net,
whose founder, Osman Osman, invested seed capital in Bkam last
September.)
Grouping doesn’t appear to be a massive issue on Souq, but accurate
categorizing often takes human effort, and any algorithm that could
better automate that process would help an e-commerce
marketplace.
Whether or not Bkam ends up sharing its resources with Souq, the
investment makes sense for Jabbar, as Abdel-Fattah and his team are
primarily focused on developing intelligent technology that can
boost e-commerce buying on the whole.
Adding flash sales
Aside from marketing and regional expansion, Abdel-Fattah says Bkam
may also expand into aggregating flash sales.
Initially, listing flash sales didn’t make sense in Egypt, he
explains; some sites didn’t ship there, and those that did would
list prices in the deal offers that wouldn’t reflect the cost of
import duties, which would double the price. When your business is
price comparison, you don’t want to mislead customers.
But now that Bkam has entered the Dubai market, where local
shipments won’t incur import duties, it plans to now aggregate
deals in the growing segment. “We’ve heard great numbers from
several sites. Flash sales seems to be booming,” says Abdel-Fattah.
Partnerships with telecoms are also in the works, to help the
site boost their mobile presence. “Our mobile application is a huge
hit with Egyptian consumers,” Abdel-Fattah said in the press
release. “We anticipate similar growth in the UAE and then Saudi
Arabia in a few months.”