MEVP portfolio company and digital gift cards pioneer, YouGotaGift (YGG) completes its acquisition by Giftee Inc, marking a significant moment in MENA’s Cross-border M&A track record.

  • This is MEVP’s second exit in 2024 after Fresha, and shores up the DPI of its 2nd fund, MEVFII to 118%
  • MEVP was YGG’s largest shareholder owning 44% and backed the Company’s expansion to KSA and rest of the GCC for nearly a decade
  • The acquisition marks MEVP’s second exit to a publicly listed entity in Japan, after foodtech major Cookpad’s acquisition of Shahiya in 2014; and overall MEVP’s fifth exit to publicly listed Companies

Dubai, United Arab Emirates: Middle East Venture Partners (MEVP), the leading VC firm in MENA, today completed the exit from its portfolio company YGG, as part of a transaction in which Japan-based giftee Inc (“giftee”) (TSE: 4449) acquired a 91% stake in YGG. This cross-border acquisition presents a significant opportunity to YGG to reinforce its leadership in the GCC's digital gift card sector while unlocking global expansion opportunities.

The transaction marks a complete exit of MEVP from this investment as it sells its entire stake of 44% as part of the transaction while recording a 5x cash on cash return.

MEVP Chairman and Co-CEO, Walid Hanna said “Consumerism is at the heart of the MENA economy and YGG successfully delivered a digital cards product to capture large swathes of this vast opportunity. Growing rapidly and profitably, it is not a surprise YGG caught the attention of international suitors. The transaction goes to show that MENA will produce world class technology and products, and at MEVP we are tied to the mission of backing founders who share this vision. We backed the Company since the Seed stage and built our position gradually ultimately owing a 44% stake in YGG. We are delighted with the outcome for our investors as we secure a 5x cash on cash return, and wish Husain Makiya, his team and Giftee the very best for the future."

Since its inception in 2013, YGG has thrived within the UAE’s entrepreneurial ecosystem and has expanded across the GCC. In 2017, the company marked a growth milestone when it entered Saudi Arabia. It has since built a base of consumer and corporate clients, who benefit from YGG’s world-class digital gift card marketplace that provides access to +1,000 regional and +5,000 international brands via its proprietary HappyYOU multi-brand card. 

Japan-based giftee Inc, a leading eGifting platform with a strong presence in Japan, Vietnam, Indonesia, and Malaysia, sees its investment as a vote of confidence in the Middle East’s fast-growing digital gift card market, which is expected to reach $16.6 billion by 2028, according to Research and Markets.

Husain Makiya, CEO & Co-founder, YOUgotaGift, said “We are proud to be the first to introduce digital gift cards back in 2013. Since then, we have built the GCC’s leading digital gift card business, expanding to Saudi Arabia and the wider Middle East region. Our passion for digital prepaid cards has earned us the reputation for being effective, trusted and innovative. Now, as we celebrate our 11-year anniversary, we are delighted to have attracted the attention of an international platform like giftee as we continue to help businesses and individuals to celebrate, reward, motivate and show appreciation.”

As a result of this acquisition, Giftee will gain a valuable footprint in the rapidly developing GCC region, benefit from the innovative digital gift card technology of YGG and take the company to new international markets. YGG will leverage giftee’s international expertise to introduce further innovations for its clients and customers across the region. 

This acquisition represents an important milestone for YGG, reinforcing its leadership in the GCC's digital gift card market. The existing management team, whose leadership has driven the company’s success, will remain in place to ensure continuity and ongoing growth. 

About MEVP

MEVP is one of the pioneer venture capital firms in the MENA region and currently manages four regional technology-focused venture capital funds with more than USD300 million in assets under management and USD 1.6 Billions in co-investments. To date, MEVP’s team, comprising 20 investment professionals, have invested in more than 60 portfolio companies across MENA, Sub-Saharan Africa, Pakistan, and Turkey.

www.mevp.com