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Saudi food delivery services company Jahez International for Information Technology has appointed HSBC to advise on its potential initial public offering (IPO) in what would be the first listing of a local technology start-up on the Saudi Parallel Market (Nomu).
Launched in 2016, the Riyadh-based Jahez now serves around two million customers with the total number of orders made through the Jahez platform reaching around 20 million in 2020.
According to CEO Ghassab Al Mandeel, Jahez has delivered over 45 million orders across the Kingdom “in less than five years and achieved healthy profitability in 2020.”
Jahez did not give disclose its expected valuation in the run-up to the IPO. Last year it raised $36.5 million in a Series A round led by Saudi venture capital firm, Impact46.
The start-up said it has launched new business lines, including a quick commerce platform (PiK) and a last mile logistics platform (LOGI).
“We also expanded into cloud kitchens through the acquisition of CoKitchens. The creation of these new ventures will help ensure that we remain agile and continue to meet the needs of existing and new customers in the future, taking advantage of greater scale and strong network effects,” added Al Mandeel.
Saudi Arabia’s Nomu parallel equity market has lighter listing requirements making it easier for SMEs to list and secure access to the capital.
(Writing by Brinda Darasha; editing by Seban Scaria)
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© ZAWYA 2021
