Dubai-based emerging markets property group, owners of Bayut and Dubizzle, raises 0 million ahead of an IPO ‘in the near future’
6 mins read

Dubai-based emerging markets property group, owners of Bayut and Dubizzle, raises $200 million ahead of an IPO ‘in the near future’

opinions expressed by entrepreneur Contributors are their own.

You are reading Entrepreneur Middle East, an international franchise by Entrepreneur Media.

Emerging Markets Property Group (EMPG), the Dubai-based Unicorn that owns real estate website Bayut and online classifieds platform dubizzle in the United Arab Emirates, has raised $200 million in a funding round to prepare for of an IPO to focus on “The near future.”



EMPG

Haider Khan, CEO of Bayut and Dubizzle, Head of EMPG MENA

The round was led by US-based growth equity fund Affinity Partners, with new funding from family mutual fund KCK, private investment firm Acacia Partners and other investors including global investment group Prosus, which retains its stake as a previous investor.

EMPG is currently present in more than 50 cities and operates classifieds platforms in emerging markets, with a focus on the MENA and Southeast Asia regions. Along with Bayut and Dubizzle, flagship platforms operating in Pakistan, Egypt and Lebanon include Zameen.com and OLX. In 2020, EMPG and Amsterdam-based OLX Group announced a merger of their MENA and South Asia businesses to create a company with AED 3.6 billion ($1 billion) in assets.

Haider Khan, head of EMPG MENA and CEO of Bayut and Dubizzle, states that the completion was a proud moment for the team. The majority of the investment is to be allocated to the United Arab Emirates, the company’s largest market where it operates Bayut and Dubizzle.

Speaking of the company’s plans for the UAE market, Khan says, “We need to improve the entire journey for clients and we can achieve this by investing in building more services to the client base, be it brokers in the real estate sector , car dealerships or our end users who sell and buy items directly on the platform. Some of the examples of services the company hopes to enable include easier ways to ship items, digital payments, and data insights for users, among others. The team also intends to invest heavily in trust and security across the platforms to “ensure we reward good players and try to remove bad players from the system.”

The company also prides itself on its classifieds and transactional product offering, which is deeply rooted in its technology platform. Khan says EMPG has invested heavily in its technology infrastructure, with its own technology centers made up of over 500 engineers. With that in mind, it makes sense that the company plans to allocate a significant chunk of further enhancing its proprietary and highly scalable technology platform to improving consumer experiences.

Also see: The Unicorn State of Mind: It’s Not Just About Valuing a Company

As an example of this commitment to ensuring a distinctive consumer experience, Khan points out that the company has been conducting some behind-the-scenes experiments with Dubizzle in various industries over the past few years to learn more about user behavior and consumer pain points. “Now with the understanding we have, it makes perfect sense for us to scale solutions to a broader audience,” says Khan. “We have also been working on many tools for our business customers and look forward to bringing these to market as well. Eventually, we will look for companies that will expand our operations and try to invest in such ventures.”

The company is also now preparing for an IPO as part of its larger vision, says Khan. “Although we have already started preparatory work for an IPO, we continue to evaluate the right timing for an IPO while studying prevailing market conditions,” he added. The company focuses on “growth opportunities” while ensuring they have a robust team to drive the business forward. “Our recent capital raising amid difficult marketing conditions underscores the quality of the business and with the new capital we are very well positioned to invest in technology and new products and to continue to grow our core classifieds business.”

Commenting on Khan’s hopes for the company, he said, “We believe that the ability to execute on the pipeline of growth opportunities that we have in the coming years and increase profitability positions us really well for an IPO in the near future.”

‘TREP TALK: Haider Khan, CEO of Bayut and dubizzle, Head of EMPG MENA shares his tips for entrepreneurs trying to raise capital

1. Build a good financial model “You have to think about monetization from day one. Your model needs to account for this, and it would be good to have some evidence along the way. The environment has changed significantly in the last nine months. Last year, a lot of people weren’t as focused on the bottom line, but everyone is looking at it now, so make sure there’s a path to profitability in the future and convince yourself before you try to convince others .

2. Your concept must solve a problem “You really have to solve a problem if you want to be successful in the long term. Something that’s already being done, twisting something differently, isn’t going to move the needle unless it makes it much better and relieves some pain isn’t being addressed.”

3. Chase the $$$ “Always rise, especially early. You will face rejection, but you don’t need everyone on board. You just have to have a few who understand and believe in what you’re doing.”

4. Tell your story and make it a good one “If you go to a big network, you might not collect money from everyone, but they will hear your story and when you come back for a later round, they will see if you have delivered what you said before. Be passionate and be hungry, but also be realistic and honest.”

5. Invest in the right talent. “You are only as good as your people. Getting the right people on board and sharing responsibility with them can change the entire course of your growth. This is another aspect that investors will be aware of.”

6. Be customer centric “Don’t spend time worrying about what other people are doing. Just focus on your customers and what you are doing to improve their experience.”

Also Read: Dubai Electricity and Water Authority’s $6.1 billion IPO becomes Middle East’s largest IPO since 2019

Leave a Reply

Your email address will not be published. Required fields are marked *