Saudi-listed delivery platform Jahez has bought a majority stake in Qatar’s top e-commerce delivery startup, marking a much-needed bright spot for the region’s entrepreneurial scene.
Jahez will buy three-quarters of Snoonu’s share capital for $225 million and subscribe to 1.56% of new shares for a cash injection of $20 million, according to a statement. Snoonu, which counts Qatar Development Bank as a backer, will continue to operate under its own brand.
In a region on the lookout for signs of life with startup exits — and that enjoys a robust offering for deliveries — the consolidation between two local players may encourage cautious investors. Startup funding across the Middle East and North Africa plummeted in June, with $52 million raised across 37 deals, marking a 55% drop compared to the previous year.