The MENA E-com IPO revolution has begun!

In this week’s edition of our weekly newsletter, we look at the evolving?IPO?revolution?in?MENA.

First of all, we want to congratulate?Jahez International Company?for being the first publicly listed tech startup on the Saudi stock exchange. This will give confidence to other local startups and early-stage investors as the investor appetite was high for Jahez. We believe that this will be a harbinger for more?IPOs?as we have seen in other markets.

We are proud to have powered Jahez?in their?initial?public?offering?through our integrated research-to-recommendation approach. We have been fortunate to have also powered other?IPOs?such as Zomato, Cartrade, Nykaa and Paytm amongst others.

This week, we provide a perspective what the?IPO?would mean for the local ecosystem as a follow-up to our previous newsletter which you can read?here.

1.?Jahez, a quick commerce player, is well positioned to capture the q-commerce growth wave

Food delivery has been a pillar of the digital economy within?MENA?– it contributes 17% to the digital economy in?MENA. The tremendous growth within Quick Commerce (Food delivery in particular) and Food-Tech (Cloud Kitchens in particular) along with changing consumer behavior has provided macro-tailwinds to the industry.

.2.?Investor demand has been high with good valuations

Jahez has seen its?IPO?oversubscribed and GMV multiples that are higher than developed markets but lower than other emerging markets such as India. Local investors?look ready to invest in the high growth technology companies.

3.?India learnings- First successful tech?IPO?drives others to follow suit

India based brands that have led/In process for an?IPO

So how does?MENA?go forward from here? By examining other markets such as India we see some patterns:

• Zomato, a Quick commerce player, was the first tech?IPO?in India. (Our region has already seen Jahez)
• Zomato?IPO?has acted as the necessary catalyst for further funding and investment within the digital space
• We have more than 10 companies that have already IPOed or getting?IPO?ready in India

MENA?remains one of the strongest regions in terms of E-commerce potential and is buzzing with players. Investor activity in digital space in?MENA?is already accelerating. Given the accelerated E-commerce growth within?MENA, and the relative time taken to?IPO?in the case of Jahez from formation, many local startups may go?public?much sooner than expected.

For more detailed insights, please reach out to us at?mea@redseer.com

Thanks,

Sandeep

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