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On the back of a momentous IPO in early 2022 that garnered wide acclaim and catalyzed a significant growth phase with a USD 2.4 billion listing, we focused our efforts during the year under review on setting the Group on a trajectory of transformative evolution, one that will see Jahez become the Kingdom’s and the wider region’s leading ecosystem of on-demand services enhancing customers lifestyle, going far beyond its current ambit of food delivery and quick commerce.
Having expanded and fortified our verticals in 2022 in full alignment with our overarching strategic vision, the past 12-months saw the Group consolidate its position as a market leader and demonstrated substantial profitability and sustainability as a trailblazing tech enterprise on track to becoming a global player. On the back of a momentous IPO in early 2022 that garnered wide acclaim and catalyzed a significant growth phase with a USD 2.4 billion listing, we focused our efforts during the year under review on setting the Group on a trajectory of transformative evolution, one that will see Jahez become the Kingdom’s and the wider region’s leading ecosystem of on-demand services enhancing customers lifestyle, going far beyond its current ambit of food delivery and quick commerce. As we move into a new year, I’m delighted to inform our valued shareholders, investors and other stakeholders that significant strides have already been made in advancing this radical transformation. Jahez remains steadfastly committed to navigating this strategic shift with precision and diligence.
During the reporting period, Jahez executed several impactful acquisitions and venture capital investments across diverse verticals that served to significantly elevate the Group’s value proposition. Among the more notable of these was Marn, a fully acquired point-of-sale and fintech provider to food and beverage retailers, which has been instrumental in enhancing our restaurant partners’ technological capacities. The first six months since the acquisition saw meticulous implementation, ensuring seamless integration of all systems, and in 2024, we plan to harness Marn’s capabilities to realize the full spectrum of synergies between our various platforms in pursuit of the Group’s growth ambitions. This strategic acquisition is of tremendous importance to the Group, serving as a pivotal element in completing our ecosystem and positioning us for sustained success in our coming evolution.
The year under review also marked few other pivotal acquisitions, venture capital investments and partnerships, all integral to our relentless campaign to achieve a harmonious balance between growth and profitability. The most recent of these acquisitions, Sol, is strategically positioned to enhance the procurement experience for our esteemed restaurant partners, unlocking heightened opportunities for sustainable growth. In a decentralized universe between restaurants and their suppliers, Sol centralizes the procurement experience by bringing an end-to-end digital experience including delivery. Our investment in Sol aims to elevate the procurement experience of our restaurant partners and offer them increased opportunities for growth.
This and other headline-making investments have given us an edge in innovation, growth and profitability over the past several months, keeping Jahez firmly on top of the industry for years to come.
Logi, our logistics business which covers approximately 30% of the Group’s annual order volume, faced a number of regulatory and operational challenges throughout 2022, which have since been overcome. Another concern raised by investors, well into the fourth quarter of 2022, was the absence of a proven path to profitability for this specific vertical that no other player in the region had been able to demonstrate. Having reevaluated this promising but as yet underutilised business from a human resources perspective on top of other, more conventional entrepreneurial considerations, we adopted a fresh outlook for Logi that would help the subsidiary reach its untapped potential. I’m proud to note that, at the end of the year under review, Logi underwent a remarkable transformation, transitioning from a negative to positive trajectory in a matter of months, marking one of the most significant milestones for the Group in 2023. Logi is now advancing towards higher profitability, and ensuring that we’re on a path towards sustainable growth is paramount. Already, the business is earning record profits, which has helped dispel any concerns regarding its standing position. Our resolve to speedily transform the business paid off, and we were able to prove, definitively, that Jahez is true to its growth promise. In three years, we believe Logi will report a percentage of growth that was once thought impossible. Our aim, going forward, is to be the biggest last-mile delivery company in the Kingdom, extending services to be not limited to our own business units, a goal we expect to reach as early as 2024.
Meanwhile, Jahez platform, the cornerstone of the Group’s revenue, followed a similar path of growth and sustained profitability during the reporting period. In a climate marked by high inflation and a host of other challenges, both in the Kingdom and elsewhere, Jahez made considerable progress on all fronts during the year under review. In 2023, Jahez also sustained its momentum in geographical expansion, cementing its presence in Bahrain and entering new markets such as Kuwait, in addition to fortifying its foothold in the Kingdom to cover over 100 Saudi Arabian cities the company operates in. During the year, concerted efforts were made to ensure Jahez’s prominence as the premier food delivery used in each city the platform was available in, and I’m happy to say that this goal was more than satisfactorily achieved.
Blu, our sports and entertainment-centred platform that was born out of a strategic partnership with Al Hilal Club, made significant progress in 2023. Blu business model is unique in the Middle East and, as an application dedicated to sport, the platform made considerable revenue during the reporting period from the sale of tickets, sports jerseys, equipment and ancillary services such as field reservations. As of December 2023, Blu reaches an impressive 70 countries in terms of orders delivered, an undeniably major achievement for the Group.
Our direct commerce app PIK encountered some hurdles during the reporting period, but none of these challenges proved insurmountable and, in fact, served as valuable learning opportunities for the subsidiary. Notably, insights gleaned from the merchant side with regard to inventory chain integration and related issues proved particularly instructive. As we conclude the year under review, PIK is actively engaged in initiatives aimed at enhancing alignment with our merchant partners in order to optimize service delivery to our customers. As always, upholding the highest standards of service quality is something that Jahez holds in the highest regard.
With respect to Co, our cloud kitchen business, we have expanded our presence to 13 locations across the Kingdom. This business ends 2023 on a high note, bolstered by the timely introduction of an all-new cloud shelving feature through a new key investment that has enhanced the company’s capabilities.
Co shelving services are extended to each partner store that we partner with, providing us a solid positioning among restaurants and other merchants, contributing to our encouraging success and growth trajectory in the dynamic landscape of cloud-based culinary services.
Other developments in 2023 include the numerous conveniences we have offered our valuable customers, such as a more advanced wallet feature, which has contributed to customer retention and building trust. Call centers and dispatch centers also underwent substantial enhancements over the reporting period. The streamlined operational efficiency is evidenced by a noteworthy reduction in the time required to complete a call. These advancements in customer service can be attributed to the collaborative efforts of our Information and Communication Technology (ICT) department and various other organizational units whose synergies yielded innovative strategies aimed at customer retention, exemplifying our commitment to delivering unparalleled service experiences and fortifying our relationships with our valued clientele.
Our commitment to empowering restaurant and merchant partners with actionable insights remained unwavering as we diligently provided valuable data analytics, offering strategic guidance to all our partners, helping them enhance sales and their overall value proposition. A sophisticated portal that helps merchants market their products and achieve increased visibility and efficiency was designed by our data team leveraging artificial intelligence (AI) that has proved invaluable to our partners across the board. A state-of-the-art digital wallet introduced in 2023, meanwhile, allows a given restaurant’s or merchant’s customers to order exclusively from them. This is a unique innovation seen nowhere else in the region and also allows merchants to reward their top customers with exclusive vouchers that can be redeemed at their own outlets. The response from merchants has so far been highly encouraging, to say the least.
As Jahez steps into a new year, the Group continues to build on its success and grow as a major international player in the food aggregator market while also taking measures to transform the business into an ecosystem of on-demand services. I take this opportunity to note that 2024 will mark the Group’s highly anticipated transfer to the Main Market on the Saudi exchange, enabling further opportunities for growth and better governance. Our strategy going into the new year will be to focus on leveraging the synergies between our verticals and forge stronger connections between 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. In anticipation of this transformation, we have already introduced new digital services to our customers, signaling our commitment to providing a seamless digital experience. Challenges will no doubt come, but over the years Jahez has amply demonstrated its resilience in the face of all manner of difficulties, all of which we have navigated successfully, and I would like to take this opportunity to remind all our stakeholders that the Group will prevail and reach new and unprecedented heights in the months ahead.
I would also like to extend my sincerest gratitude to the Saudi Government, under the leadership of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al Saud, may Allah Almighty protect him, and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, may Allah protect him, for fostering a socioeconomic environment conducive to sustainable growth and profitability. The authorities’ efforts during the year that marked the midpoint of the Vision 2030 journey contributed significantly to realizing our own grand vision of becoming the most loved lifestyle platform in the Middle East.
My appreciation also goes out to the Board of Directors and Executive Management, and all shareholders and partners for their unwavering confidence and support to Jahez at all times under all circumstances.
Ghassab Bin Salman Bin Ghassab Bin Mandeel
Chief Executive Officer