Riyadh-based food delivery startup Jahez is planning an IPO for next year, its CEO Ghassab AlMandeel said during a fireside chat with Digital Digest’s Racha Ghamlouch at RiseUp Summit on Saturday. AlMandeel said this in response to a question about whether the startup may consider partnering with Delivery Hero in the future or would like to stay independent. He stated that the Saudi market alone is too big for multiple players to co-exist.
Delivery Hero has been the biggest acquirer in the food delivery space of the Middle East, North Africa, and Turkey. It currently owns multiple food delivery brands in the region, most of which were either directly acquired by the German company or became a part of it as a result of indirect acquisitions. Delivery Hero owns a 63% majority stake in Saudi’s leading food delivery company, HungerStation.
AlMandeel founded Jahez in 2016. The startup has quickly grown into one of the largest food delivery players in Saudi Arabia. AlMandeel said that they plan to list the company on Tadawul, the Saudi Stock Exchange. According to the requirements listed on Tadawul’s website, a company must have a market cap of at least SAR 300 million (USD 80 million) to list shares on the exchange. It should also have a track record of profitability, unless the company is listing on Numu, a parallel equity market with lighter requirements.
Jahez raised USD 36.5 million in the largest-ever financing round for a Saudi startup just six months ago. The transaction included sales of both primary and secondary shares. It is not clear how much of this money was injected into Jahez. At the time, the startup said that it’s on its way to exceeding SAR 1 billion in order value in 2020. This could translate into tens of millions of dollars of revenue.
During the fireside chat, AlMandeel also shared information about the company’s expansion plans, saying that Jahez is eyeing multiple markets in GCC, hinting that some could be launched in 2021. He said that the company is also launching cloud kitchens and quick commerce. The cloud kitchens will serve restaurants on its platform.
The CEO stated that goals for 2024 have already been achieved in 2020, without sharing further details. Highlighting the growth, he said that the orders, app downloads, and the customers Jahez serves have grown multiple-folds in the last few years.
If Jahez moves ahead with an IPO, it will be the first Saudi startup to become a publicly listed company.
This article was first published by MENAbytes.