Mehdi Samae, CEO of ‘Lunato,’ in a note for reporters, has assessed that Digikala’s investment attraction is beneficial for the entire startup ecosystem in the country.
We are all aware of the challenging economic conditions in Iran these days. Not only startups but also large industries and mature organizations face difficulties in continuing their path and ensuring their survival. The electricity industry, as one of the country’s most crucial infrastructures, is encountering major challenges, and the inability to supply electricity during the summer reflects the large-scale problems present.
One of the major factors contributing to the current situation is the lack of investment in upgrading existing infrastructure and meeting the growing electricity demand. The absence of foreign investment, sanctions, and other issues have seriously challenged these crucial industries. These challenges also impact the startup ecosystem, where a shortage of financial resources for growth and development has led to significant issues.
These factors, combined with restrictions such as the inability to list on the stock exchange for raising larger investments, have caused stagnation and routine in the startup ecosystem. Given the high cost of capital in our country, venture capital has also declined in recent years or is economically unjustifiable for startups.
Examining Digikala’s New Investment
It has not been long since the acquisition of Tap30 by Golrang Industrial Group, yet news of the sale of 40% of Digikala’s shares to Hamrahe Aval has emerged. Golrang, as a private sector entity, and Hamrahe Aval, previously active in the market through its investment arm, Harakat Aval, have concluded some of the most significant investment contracts in recent years.
Initial feedback on the government’s involvement in Digikala indicates that in some countries, governments play an active role in investing in and purchasing shares of startups. This type of investment is usually aimed at supporting innovation, economic growth, job creation, and technological development. Given Iran’s governance structure, this is not far-fetched. Examples of government shareholding in private startups exist in countries like Saudi Arabia, Singapore, and even the United States.
Government investment funds, supportive programs, government accelerators, direct government investment in R&D projects, stock purchases, and investment through state-owned companies are examples of such practices.
Advantages of Hamrah Aval’s Investment in Digikala
Hamrahe Aval’s investment in Digikala is a strategic move for both companies. This investment can be evaluated from several aspects:
Strengthening Hamrah Aval’s Position in the Digital Market: As the largest mobile operator in Iran, Hamrahe Aval aims to strengthen its presence in the digital and e-commerce market with this investment. Digikala, as the largest online store in Iran, offers Hamrahe Aval an excellent opportunity to capitalize on the rapid growth of e-commerce in the country.
Strategic Synergy: This investment can lead to synergy between the two companies. Hamrah Aval can extend its services to a broader user base through Digikala’s extensive user base. Conversely, Digikala can leverage Hamrahe Aval’s infrastructure and technologies to improve its services and enhance user experience.
Access to Big Data and Analytics: Investment in Digikala can provide Hamrahe Aval with access to Big Data on user purchase behaviors. This information can be used to enhance services, conduct more precise marketing, and develop new products.
Diversification of Investment Portfolio: For Hamrahe Aval, this investment represents a strategy to diversify its investment portfolio. Entering the e-commerce market can reduce risks associated with dependence on traditional telecommunications markets.
Strengthening Digikala’s Position: From Digikala’s perspective, this investment can serve as a strong financial source for developing infrastructure, increasing logistics capacity, and improving technologies. Additionally, Digikala can benefit from Hamrahe Aval’s credibility and resources for its business development.
Positive Impact on Iran’s Digital Economy: Such investments can help develop and grow the digital economy in Iran. Collaboration between major companies in various fields may lead to job creation, increased innovation, and strengthened digital infrastructure.
Liquidity of Shares and Its Effects on the Digital Economy
One area that significantly supports Iran’s digital economy, but is often overlooked, is the liquidity of shares held by original founders or senior managers of these organizations. The exit of Milad Monshipoor from Tap30 and the liquidity of part of the shares of Sarava, as well as the transfer of shares by the Mohammadi brothers in Digikala, stimulates the cash flow in this space and could lead to new investments in the long term. The essence of startup founders is to create new value, and such exits pave the way for developing the digital economy in Iran.
Conclusion
The sale of shares and the attraction of investment by Digikala is crucial not only for the company itself but also for the entire Iranian startup ecosystem. This development can accelerate the growth of the digital economy, increase innovation, and create new job opportunities. Additionally, the liquidity of founders’ shares can lead to reinvestment in new startups and generate new values in the market. Overall, such moves can make the Iranian startup ecosystem more dynamic and resilient to economic challenges.
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