Tracking Jahez’s Five-Year Journey to Become a Unicorn

Jahez, Saudi Arabia’s online food-delivery unicorn, successfully listed on Saudi’s secondary market, Nomu, raising a US $2.4 billion initial public offering (IPO) in 2022. Jahez achieved this stellar exit within five years of establishing itself. 

A year prior to IPOing, the food-delivery startup grew from serving 22 cities to serving 47 cities, capturing around 30% of the country’s meal delivery market share. By the end of 2021, the company served 1.9 million customers. 2 years later, Jahez’s consumer base has almost doubled to serve 3.5 million active customers.

Impact46, a Riyadh-based venture capital firm, raised a single asset fund for Jahez’s IPO amounting to US $37 million. Founding Partner of IMPACT46, Abdulaziz Alomran, has this to say about this listing: “While Impact46 impacted Jahez’s IPO, marking the first tech startup backed by venture capital (VC) to go public, the much-anticipated IPO move also set an important precedent that will widen the entry funnel of startups listing in the Kingdom. Jahez’s pioneering IPO has positioned the Saudi market as a leader in the region, taking the ecosystem to a new horizon.”

Infobyte: Jahez’s Journey and Key Milestones

Since its IPO on January 5, 2022, Jahez has demonstrated remarkable growth and strategic foresight. By the end of 2023, the company had increased its revenue by 1.5 times and saw a 64% surge in the number of orders compared to 2021. With an adjusted EBITDA profit of SAR 181.3 million (US $48.3 million) and concluding the financial year with over US $31 million in profits, Jahez has firmly established its market dominance.

Infobyte: Jahez’s Growth Key Indicators

2023: A Year of Transformative Evolution

In 2023, Jahez embarked on a journey of transformative evolution, setting its sights on becoming the leading ecosystem of on-demand services in the Kingdom and the wider region. This strategic pivot aimed to expand beyond food delivery and quick commerce to enhance customer lifestyles comprehensively.

Key to this strategy were several impactful acquisitions and venture capital investments across diverse verticals, significantly elevating the Group’s value proposition: Marn was fully acquired in January 2023 for SAR 60 million (US $16 million): Marn is a point-of-sale and fintech provider for food and beverage retailers. Marn has played a crucial role in enhancing the technological capacities of Jahez’s restaurant partners.

Sol sold a 35% stake to Jahez in Decenber 2023. Sol is strategically positioned to enhance the procurement experience for restaurant partners, providing an end-to-end digital experience that centralizes the procurement process, including delivery. This investment aims to unlock new opportunities for sustainable growth for Jahez’s partners.

The Jahez platform, the cornerstone of the Group’s revenue, continued its trajectory of growth and sustained profitability. Despite high inflation and various challenges, Jahez made significant progress, expanding its geographical footprint. In 2023, Jahez cemented its presence in Bahrain and entered new markets such as Kuwait, while also strengthening its operations in over 100 cities across Saudi Arabia.

Moreover, Jahez introduced several customer-centric innovations, including a more advanced wallet feature, which has significantly contributed to customer retention and trust. The company also launched a sophisticated portal designed by its data team, leveraging artificial intelligence (AI) to help merchants market their products, achieving increased visibility and efficiency. Additionally, a state-of-the-art digital wallet was introduced, allowing restaurants and merchants to offer exclusive services and rewards to their top customers. This unique innovation has received enthusiastic responses from merchants.

2024 and Beyond: Building on Success

As Jahez steps into 2024, the company is poised to continue its success story and grow as a major international player in the food aggregator market. A significant milestone for 2024 will be the Group’s anticipated transfer to the Main Market on the Saudi exchange, which will unlock further growth opportunities and enhance governance.

The strategy for 2024 focuses on leveraging the synergies between Jahez’s various verticals and forging stronger connections between them. The company aims to become the largest last-mile delivery company in the Kingdom, extending its services beyond its own business units. This goal is expected to be achieved as early as 2024, setting Jahez on a path to even greater heights.our stakeholders. The integration of AI and the establishment of new departments will facilitate this endeavor, helping the business in its coming transition to a digital lifestyle solutions company.

Next Read: The Future of Food Delivery in Saudi Arabia: A Transformative Market on the Rise

 

Read more in the Special Report, ‘The Future of Food Delivery in Saudi Arabia’.