What Are the Dimensions of the Largest Deal in the Country’s Startup Ecosystem? What Future Awaits Digikala and MCI?
Major Deal in Iran’s Startup Ecosystem: Implications of the 40% Stake Purchase by Hamrahe Aval
The acquisition of a 40% stake in Digikala by Hamrahe Aval for approximately $8.4 billion has generated significant reactions and discussions. This deal is seen as one of the largest transactions in Iran’s startup ecosystem, and it raises several questions regarding the valuation of Digikala and the broader implications of the deal.
Deal Details:
Transaction Value and Valuation:
$8.4 billion for a 40% stake in Digikala.
Valuation of Digikala:
The valuation of Digikala in this transaction is estimated at $30 billion. This figure represents a considerable drop compared to previous valuations, such as $950 million (approximately $380 million) reported by Pamgarnet two years ago. This significant discrepancy in valuation has led to questions and concerns about the reasons behind it.
Reactions and Analysis:
Valuation Concerns:
Analysts have expressed concerns about the low valuation of Digikala compared to global standards and its comparison with companies like Trendyol, which has a valuation of around $15 billion. This discrepancy is attributed to various factors including regulatory constraints and market access issues.
Political and Economic Speculations:
The purchase of Digikala’s shares by Hamrahe Aval, a semi-governmental entity, has sparked speculations about potential changes in the company’s ownership structure and its impact on Digikala’s operations.
Reasons for the Deal:
Need for a Stock Market Listing:
According to Mohammadreza Khanaki, CEO of Azki Investment, one of the reasons behind Hamrahe Aval’s acquisition of Digikala’s shares is to facilitate the company’s entry into the stock market. Khanaki believes that Digikala’s previous shareholder structure may have hindered its ability to list on the stock exchange, and the involvement of a “qualified” shareholder like Hamrahe Aval could smoothen this process.
Financial and Strategic Benefits:
Khanaki suggests that Hamrahe Aval’s acquisition is also aimed at capitalizing on the financial benefits before Digikala’s stock market debut. He points out that the price of Digikala’s shares might increase by 30-40% once listed, providing substantial profit to Hamrahe Aval.
The acquisition is expected to accelerate Digikala’s development and marketing efforts, with Hamrahe Aval’s significant subscriber base potentially providing additional resources and support.
Future Prospects for Digikala and Hamrahe Aval:
Digikala:
Growth and Expansion:
Entry into the stock market will enable Digikala to access new financial resources and continue its infrastructure development. The involvement of Hamrahe Aval as a major shareholder is expected to support and expedite this growth.
Challenges:
Digikala faces challenges such as regulatory constraints, economic conditions, and competition from international platforms, which could impact its growth trajectory.
Hamrahe Aval:
New Strategies:
By acquiring a stake in Digikala, Hamrahe Aval is positioning itself to play a more significant role in the digital and e-commerce sectors. This move will allow Hamrahe Aval to leverage digital market opportunities and implement new strategies.
Financial Impact:
The acquisition is anticipated to yield considerable financial benefits for Hamrahe Aval, particularly if Digikala’s shares perform well upon listing.
This major deal marks a significant shift in the ownership structure of Digikala and highlights the evolving dynamics within Iran’s startup ecosystem. The transaction reflects broader economic and strategic trends and sets the stage for potential future developments for both Digikala and Hamrahe Aval.
Mohammadreza Khanaki, CEO of Azki Investment, stated:
“The acquisition by Hamrahe Aval is likely driven by the need to facilitate Digikala’s entry into the stock market. The previous shareholder structure might have been a barrier, and having a ‘qualified’ shareholder could help in overcoming this obstacle. Additionally, this pre-IPO deal allows Hamrahe Aval to benefit financially from an anticipated increase in Digikala’s stock price. The involvement of Hamrahe Aval could also provide significant strategic advantages, accelerating Digikala’s development and market positioning.”
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