Shady Mokhtar - Afrikan Heroes

Key Reasons Why TFK, Egypt’s Fashion Marketplace, Acquired Rival OPIO

June 25, 2023

Egypt-based fashion e-commerce marketplace, The Fashion Kingdom (TFK), has made an undisclosed acquisition of OPIO, a direct-to-consumer (D2C) fashion brand. TFK was founded in 2020 by Marianne Simaika, Fadi Antaki, and Karim Abdel Kader. The company offers a comprehensive support platform for brands, encompassing manufacturing, operations, marketing, and content creation capabilities, all powered by a scalable tech stack.

The acquisition of OPIO is a strategic move for TFK as it aligns with their vision to establish “THE FASHION KINGDOM,” an all-in-one fashion aggregator and venture builder. This acquisition aims to revolutionize the fashion industry in the region. By joining forces, TFK and OPIO will combine their expertise, resources, and brand portfolios to create a powerful fashion group.

OPIO was founded by Shady Mokhtar — OPIO founder Shady Mokhtar

Why The Acquisition

The acquisition of OPIO by TFK is motivated by several key factors. First and foremost, it allows TFK to strengthen its position as Egypt’s leading curated fashion marketplace. By incorporating OPIO’s direct-to-consumer expertise, TFK can enhance its existing marketplace infrastructure and broaden its reach within the fashion industry.

Additionally, the acquisition serves as a strategic step towards the establishment of “THE FASHION KINGDOM.” TFK aims to build, acquire, and grow diversified vertical fashion brands across the MENA region, both online and offline. This move positions TFK as an all-in-one fashion aggregator and venture builder, enabling them to tap into various markets and expand their influence.

Moreover, TFK’s focus on developing and promoting locally grown fashion brands sets it apart from other fashion groups in the region that primarily rely on international franchises. The acquisition of OPIO, along with other brands within TFK’s portfolio like FE, Boddiction, Saltwater Circle, and No Apologies, enables the company to create culturally relevant and relatable brands specifically designed for the MENA region. This strategy aims to reduce the reliance on imports and provide authentic fashion choices that resonate with the diverse population in the MENA region.

A Look at OPIO Kingdom

OPIO was founded by Shady Mokhtar, who currently serves as the co-founder and CEO of the company. Founded in 2017, OPIO’s emergence as a direct-to-consumer (D2C) fashion brand caught the attention of TFK due to its potential for extraordinary growth.

OPIO’s primary markets are Egypt and the Kingdom of Saudi Arabia (KSA). These markets were chosen due to their vast potential and market size. According to ecommercedb.com, Egypt’s fashion e-commerce market is valued at $1.6 billion, projected to reach $3 billion by 2027. Similarly, KSA’s fashion e-commerce market is valued at $4 billion, expected to reach $7 billion by 2027.

OPIO’s focus lies in offering fashion products directly to consumers, bypassing traditional retail channels. This business model allows for a more streamlined and efficient supply chain, enabling OPIO to deliver high-quality fashion items to customers at competitive prices. The acquisition by TFK provides OPIO with the opportunity to expand its presence throughout the MENA region and leverage TFK’s established infrastructure and resources.

OPIO fashion Egypt OPIO fashion Egypt

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard

Egyptian Fashion Startup Opio Raises $300,000 Seed Investment

January 14, 2021

Fashion startups are proving hot cakes in Egypt. Recall we ran a story about why investors are rushing after North African fashion startups a few weeks back. Egypt-based women’s fashionwear brand Opio has, well, become the latest North African fashion startup to net funding from investors. Opio has raised $300,000 in a seed round from AUC Angels, local and regional angel investors along with follow-on funding from Flat6labs Cairo.

Co-founders, Shady Mokhtar and Reem Abdellaftif

“We’ve proven that we can develop a value proposition that can easily compete with international brands, Egypt is full of design and creative talent. Backing this up by relentless focus on customer experience we are confident that we can easily add a strong mark on the local and regional online fashion market.” said Reem Abdellaftif Opio’s co-founder, creative director and designer-in-chief.

Why The Investors Invested

On why it invested, Yaser El Khereji CEO of Albasateen trading company and one of Opio’s lead investors, said:

“We were impressed with Opio’s unique value proposition, We are planning on providing Opio with the logistical infrastructure they need to set up a strong foothold in the GCC region. With a special attention to localising the brand to further appeal to the target demographic.”

Mariam Kamel from AUC Angels said:

“OPIO has been very responsive to market trends, both in terms of how it interacts with its clientele, and how it reacts to changes induced by the recent developments in the digitalisation of the shopping experience. They’ve revised their business plan when they’ve needed to and established key partnerships where it was beneficial. Shady and his team move fast, and always have news to share on what’s coming next.”

According to the Ready-made Garments Export Council, Egypt’s apparel industry, for instance, contributes 3 percent to the country’s gross domestic product, represents 15 percent of non-oil exports, and employs 33 percent of the industrial labor force. Egypt also has more than 2,500 apparel factories and it is considered to be the first sector in terms of the labour force, which recorded 1.5 million workers, 50 % of which are women. With about $1.6 billion exports in 2018, the apparel sector is the country’s most important industrial sector.

A Look At What Opio Does

Launched in 2017, Opio is a direct-to-consumer e-commerce platform and commissions white label and toll manufacturing women’s wear apparel to different manufacturers. Opio seeks to eliminate the hassle of researching brands and choosing from numerous options, to make the shopping experience more effortless. The company develops strong ties with local manufacturers, markets, and distributes its own products without using middlemen, thus interacting directly with consumers and reducing costs

“What I see in this market is a huge supply-demand imbalance,” said Shady Mokhtar the co-founder and CEO of Opio, adding “Egypt has thousands of manufacturers with exceptional manufacturing capabilities yet, a total lack of modern day customers requirements, up to date fashion trends and marketing know-how, specifically in digital marketing practices. On the other hand we’ve witnessed some jaw dropping internet penetration in Egypt the past 10 years, a hyper exposed gen Z, with very limited online offerings.”

The company is hoping to benefit from the rise in online shopping in the country following the pandemic.

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer