Iran's Mobile Service Provider MCI Buys 40% Stake in Digikala, Signaling Major Shift in Iran's Tech Sector

Iran's largest telecommunications provider, Mobile Communications of Iran (MCI), has acquired a 40% stake in the country's leading e-commerce platform, Digikala, through its venture capital arm, Harakat Aval. This strategic move underscores the growing involvement of banks and telecom operators in Iran's technology sector.

Often dubbed "Iran's Amazon," Digikala, established in 2006, is a major online marketplace offering a broad range of products, including electronics, home goods, fashion, and beauty items. The platform has transformed the online shopping experience in Iran, allowing consumers to conveniently shop online with home delivery services.

The acquisition by MCI, reportedly valuing Digikala at IRR 300 trillion ($500 million), marks a significant development in Iran's tech landscape. MCI's 40% stake, valued at IRR 120 trillion, was purchased from existing investor Sarava and other minority shareholders. This deal is expected to fuel competition within the sector, particularly between Digikala and other major players like ride-hailing apps Snapp and Tapsi.

This acquisition comes at a crucial time as Digikala prepares to address key challenges, including plans to list on the stock exchange and expand into global markets. Talks surrounding this deal began in January 2024, though initial discussions date back over two years, signaling the complexity and significance of the transaction. Further developments are anticipated as the details of this landmark agreement unfold.

Source: bne IntelliNews