Saudi food startup raises $ 170 mn from Sequoia Capital India, others

Riyadh-based Foodics will use the proceeds to boost its services and expand into new countries, Chief Executive Officer Ahmad Al Zaini said in an interview. The company is also looking at potentially acquiring rivals to help it grow and will expand into fintech after receiving a license from the Saudi central bank, he said.

The funds will also help Foodics explore “merger and acquisition opportunities around the region,” Al Zaini said, declining to comment on the company’s valuation.

Sequoia made its first investment in Saudi Arabia in January, leading a funding round for Lean Technologies. It has been deepening its presence in the Middle East after recently backing companies from Turkey to Egypt. The venture capital firm is among the global investors eager to seize on the spread of financial technology and e-commerce in the region as local economies emerge from the pandemic.

Sanabil, a unit of Saudi Arabia’s sovereign wealth fund, and STV, a $500 million Saudi venture fund, also participated in the fundraising.

Foodics, which offers restaurant management software, digital payments and micro-loans, last raised $20 million from investors in early 2021. The firm probably has enough funding to keep it going for the next two to three years, and would consider an initial public offering after that time, Al Zaini said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor