Mohamed El-Sewedy Acquires Magma via Averroes Ventures for an Undisclosed Amount
Averroes Ventures, an Egyptian early-stage VC firm backed by the Mohamed El-Sewedy, has acquired sportswear startup, Magma for an undisclosed sum.
Averroes Ventures’ acquisition of Magma, one of Egypt’s promising sportswear manufacturers, will reposition the startup to meet the needs of an untapped segment of the Egyptian market. Magma offers a distinct value proposition as a local manufacturer with global potential by leveraging its unique technology, which is the foundation of all its products. The new strategic investments will significantly impact the quality of its products and its presence in the local and regional markets.
Mohamed El-Sewedy, Magma’s Chairman, commented on the acquisition and hinted at a regional expansion as part of their plans. “We have made great progress and have very optimistic plans after the acquisition of Magma, including regional expansion in the Middle East and Gulf region very soon, as well as the opening of a leading state-of-the-art store in Egypt in 2023. These are significant milestones in the company’s journey. I expect Magma will become a leading global sportswear brand in the region by investing in product materials and textiles based on the latest technology and the latest know-how in e-commerce. We also aim to diversify and develop products and designs by top designers to meet modern market demand for high quality, contributing to a booming economy that encourages local manufacturing and exports to other markets.”
“We believe in the growth potential of native brands and designs accompanied by cutting edge technologies together with the growing demand of e-commerce, creating a winning formula for Magma,” Ahmed Alsharif, Co-founder and CEO of Averroes Ventures, said. “The new investments and the management team are capable of transforming this company into a global player in the growing sector of sportswear and athleisure. Moreover, Averroes Venture invests and supports early-stage startups and SMEs operating in the logistics technology, food, Agritech, and e-commerce industries in Egypt and the MENA region.”
Mohamed El-Sewedy
Averroes Ventures supports and invests in early-stage startups and SMEs in the logistics technology, food, agritech, and e-commerce industries in Egypt and the MENA region.
“The Company’s acquisition spearheaded by Averroes Ventures, and led by Mohamed El-Sewedy, is an important step in Magma’s history, for his great reputation and confidence in the Egyptian and regional economies,” said Amr Abu Ali, CEO of Magma. We made an important decision to expand Magma’s product offering to meet the demand of new market segments, which includes increasing functional sports and athleisure clothing lines for men and women, designed for daily exercise and wear, with plans to introduce team wear, beachwear, accessories, footwear, and a kids’ collection.”
What Magma does
Magma, a sportswear brand founded in 2018, specializes in creating athletic mesh fabrics with moisture management and anti-microbial properties. The startup is one of the first Egyptian brands to offer high-quality sportswear that inspires and empowers athletes and consumers while being globally competitive. The manufacturing process incorporates cutting-edge technology and an advanced R&D department that works on developing fabrics. The company was among the first to use this technology, which is engineered to improve performance with fabric that has breathability, antibacterial properties, odor resistance, fast drying, and sweat-wicking properties.
Although Magma Sportswear started its operation online, it has evolved over the years and has recently expanded its retail business through well-known outlets such as Debenhams. Magma also has a strong team with e-commerce experience.