Portfolio Review

The businesses that the Group acquires through Red Color, its investment arm, serve to complete Jahez supply chain and improve and expand its product offerings. Red Color invests in companies that serve to strengthen its position within a specific portfolio.

Red Color was established in Q1 2021 with a view to delivering the best value to all stakeholders, targeting investments that would maximize the Group’s corporate value.

A Sound Investment Strategy

Red Color pursues inorganic growth opportunities through investments in, or acquisitions of, emerging startups and technologies that it sees as complementary to the Group’s business, with fostering innovation, collaboration, efficiency and strategic investments as its fundamental pillars.

We aspire to accelerate growth by on-boarding innovations that lead to more efficient development cycles, integrating new impulses to stimulate Jahez’s startup culture, continuously challenge Jahez’s operations to improve efficiency, reduce costs, enhance quality of service, and to make positive returns from our investments.

We look at top line growth and bottom line enhancement by identifying operational synergies across Group companies in evaluating potential investments and prioritize investing in and acquiring businesses operating in sectors that are in principle closer to Jahez’s core identity than others. Primary examples of these sectors are logistics, e-commerce, the restaurant ecosystem, fintech, and AdTech. We believe that by investing in these sectors, we can leverage our network and relationships to enable and create value for our targets and benefit financially from growing the business and operationally from enhancing our service quality.

This exercise is focused on the Kingdom, followed by the Gulf Corporation of Countries (GCC) and then the MENA region, while deployment size and targeted ownership varies depending on the opportunity. Through our corporate venture capital program, we primarily deploy and seek significant minority stake in startups. With regard to our mergers and acquisitions program, we seek a majority stake and control in businesses that have a clear integration story with one or more of Jahez Group companies.

Company	Vertical	Description	Domicile	Round	Investment ($)	Investment rationale
Hala	Fintech	Provides payment terminals to grocery retailers	Kingdom of Saudi Arabia	Pre-Series B	1,000,000	Hala’s great growth enabled them to capture great market share fast, which made it ideal for Jahez to tap into the adjacent market of retail grocery through payments, along with their EMI license that Jahez can benefit from in the future
Nana	Q-commerce	Direct to consumer marketplace offering fast grocery delivery	Kingdom of Saudi Arabia	Pre-Series B	2,000,000	Expand market reach and assess the potential in online grocery market by adding new product offering, and leveraging the combined food and grocery experience to generate more revenue
Bonat	F&B SaaS	Provider of loyalty programs to restaurants	Kingdom of Saudi Arabia	Seed	400,000	Building the loyalty system for Jahez, and complementing Marn’s offline experience with a consumer app to give restaurants using Marn the luxury of engaging with their offline user base
RedBox	Logistics	Provider of APMs as an alternative to home delivery from e-commerce	Kingdom of Saudi Arabia	Series A	5,250,000	Jahez being a pioneer in the last-mile scene in KSA means we continuously look for emerging technologies and trends in the space, and given the recent trends in home delivery alternatives
Barq	Logistics	Fleet provider dedicated last mile delivery for e-commerce	Kingdom of Saudi Arabia	Pre-Series A	2,000,000	Barq was one of the biggest fleet vendors to Jahez prior to the investment, Jahez’s investment in company came from efforts to expand fleet and presence in the last-mile delivery scene
Omniful	Logistics	SaaS enabling offline brick and mortars to have digital presence	Kingdom of Saudi Arabia	Seed	351,667	Thriving to partner with innovators across all sectors specifically in logistics, Omniful is enabling retailers to have digital presence, thus, boosting their e-commerce sales, giving Jahez exposure to e-commerce
CloudShelf	Logistics	Warehousing and fulfilment services	Kingdom of Saudi Arabia	Pre-Series A	1,000,000	Amidst the complexity of delivery and difficulty of same day e-Commerce delivery in KSA, Cloudshelf’s unique fulfilment model achieved that, which excited us to take part and expand within logistics in fulfilment
Parcel Delivery	Logistics	Fleet provider dedicated last mile delivery for e-commerce	Kingdom of Bahrain	Seed	333,333	Putting last mile delivery at the heart of Jahez is what enabled us to set new standards for food delivery in KSA. Our strategic investment in Parcel is our first step in replicating that experience in Bahrain
Soum	e-commerce	Streamlined and secure P2P marketplace for pre-owned goods trade	Kingdom of Saudi Arabia	Series A	6,500,000	Given the heavy-logistics nature of P2P marketplace due to the presence of multiple destinations in one delivery, our investment in Soum is very strategic in cutting their cost in middle and last mile and boosting their growth
Total					18,835,000