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It gives us great pride to see winners in our past Startup Demo competitions succeeding in the business world. Some even take it to a whole new level by securing considerable investments, as was the case with Eventtus last month, and more recently, the online beauty shop GlamBox  which received a $1.36 million funding boost from MBC Ventures, STC Ventures, R&R Ventures in its first round of funding.

While this funding springs hope to other e-commerce startups in region, it also brings forth questions as to how this sector is perceived by women, and what insights compelled the VC funds to invest in an e-commerce company that targets women in the region.

Recalling what GlamBox is all about

“We’re a mix of brains & beauty experts but above all we’re consumers like you” GlamBox’s vision claims. The company helps consumers find brands, rediscover old favorites and try amazing new cosmetics and beauty products from well-known brands.

The company offers a variety of products from body, skincare, hair, make up, tools and fragrance.

GlamBox is not the usual kind of e-commerce merchandises; it mainly targets women in the Middle East who enjoy purchasing luxurious and beauty products for their personal use.

“GlamBox was founded in January 2012 with the vision to create an all-encompassing beauty home for women in the Middle East that offers the most coveted beauty products via a convenient and valuable service, genuinely useful and insightful content and a strong community,” said Shant Oknayan, Co-Founder and Managing Director of GlamBox.

This online beauty-service provider is one of the very few in the region and appears to be rising to the top with its first and outstanding round of funding from the Ventures mentioned above. 

The e-commerce company of beauty luxuries plans to, rapidly and strategically, scale its operations to start up its expansion in the region thanks to the fresh funds it currently received. GlamBox will ensure to deliver its products, in pink glossy boxes, at the doorsteps of thousands of women across Saudi Arabia bythe end of 2013. 

The company is also working with successful content portals for women in the region. "We agreed on a traffic deal with Layalina and we’re still working on deals with other portals to offer special promotions," states Oknayan.

E-Commerce Usage in KSA and UAE

A 2013 report by Ipsos  evolving around the online audience consumption habits showed impressive numbers of female Internet consumption in Saudi Arabia and UAE. Stereotypically, you would expect males to be mostly engaged in online activities.

Surprisingly, statistics showed that the percentage of monthly Internet usage with females reached 42%, which is very close to the male’s usage of 58% in KSA. 

What was even more interesting is that Saudi Arabian females showed a monthly Internet reach in e-commerce of 22%, equally to males. Similar percentages were shown in the UAE: females 25% and males 29%. While these numbers are not as significant when compared to the monthly Internet reach in search engines (which is close to 88%), the figures are certainly on the rise, and they reflect the great potential of GlamBox for future growth.