Jahez
The story began in 2014 between four founders who agreed to establish a company, "Alamat", which was concerned with technical solutions. After that, they decided to go into a specific field of technology, so they chose the field of geographic information systems, but this project ended in failure a year and a half after its inception.
But despite the failure of the project, they came out of this failure with a benefit, which is the formation of many systems as intangible assets.
And out of this failure, "Jahez" was born.
Where they met with the members of the Board of Directors of "Alamat" and decided to change their direction completely, as they agreed to create a platform called "on-demand services", where they studied the market and searched for its gaps in this field to determine the type of project that they will undertake.
During the research, they noticed a gap, which is the lack of a link between the customer, the driver, and the restaurant, as the role of the apps was limited to linking the customer's orders with the restaurant, as it is the restaurant is the one that takes care of delivering the orders.
They took advantage of this gap to enter into the "Delivery Applications" project.
Then Jahez Company was established.
It is an emerging Saudi company and platform that specializes in delivering orders from restaurants and shop owners within the Kingdom of Saudi Arabia
It was established in 2016 and is based in the Saudi capital, Riyadh.
In 2020, Jahez succeeded in obtaining a large financing of $36.5 million (equivalent to 137 million Saudi riyals), after it closed a Series A investment round led by the Saudi Financial Impact Investment Company.
Jahez was not satisfied with that, as it continued its success. In 2022, Jahez was able to acquire the “The Chefs” app for delivering food, sweets, flowers, and perfumes, based in Saudi Arabia, for $172.9 million.
After the completion of the acquisition deal, the capital of "Jahez" will increase from 104.9 million riyals to 108.7 million riyals, by issuing 376,879 thousand new shares for the shareholders of "The Chefz" company, thus increasing the shares of "Jahez" from 10.49 million common shares to 10.87 million shares.
The acquisition of "The Chefz" company will allow "Jahez" to expand in the field of providing food delivery services from restaurants and enhance its platforms in the field of express service.
At the beginning of 2023, Jahez entered into a purchase agreement to acquire all the shares of the owners of Aamal Maren Information Technology Company, with a total transaction value of 60 million riyals.
“Jahez” faced many challenges and obstacles that hindered the success of the company, the most important of which was dealing with delivery drivers, as most of them are not good at using phones or dealing with applications. However, the biggest and heaviest challenge was persuading restaurants to join the application due to its small size and people’s ignorance of it, and the response after every restaurant offer is: “If you succeed and your name appears in the market, come back to us and we will deal with you.”
But they not despair, as the team did its best to consolidate the name of the application and make it the first choice in its field, as the number of restaurants cooperating with the application reached more than 6,000 restaurants after it started with only 7 restaurants and a capital of less than one million Saudi riyals.
An episode of a podcast about Jahez acquisition of The Chefz:
Click the pic!
Resources:
https://www.awaan.sa/archives/7600
Done by:
Rawan Altlassi
May Alkowaileet