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Mideast Spotify Rival Anghami to Checklist on Nasdaq Through SPAC Merger

By on March 3, 2021 0


Anghami, the Abu Dhabi-based music streaming service that claims greater than 70 million customers, stated it’s featured on the Nasdaq Inventory Change in New York by merging with a clean test firm, paving the best way for one of many greatest investments in a Center Japanese tech startup in years.

Anghami, in Arabic for “my items”, merges with Vistas Media Acquisition Firm Inc., a particular objective acquisition firm shaped final yr, he stated in a Wednesday assertion confirming an earlier report from Bloomberg Information. The deal marks the primary itemizing on the Nasdaq in New York Metropolis by a Center Japanese tech firm.

Because of the deal, Anghami could possibly be valued at almost $ 300 million, individuals acquainted with the matter stated, declining to be named. The deal features a mixed $ 40 million dedication from the UAE finance firm Shuaa Capital and the guardian firm of the sponsor SPAC in what known as PIPE – non-public funding in public capital – financing.

The music platform will use a part of the newly raised funds to recruit and spend money on content material in markets like Saudi Arabia and Egypt, in response to Elie Habib, one among Anghami’s two founders.

The deal “will permit us to spice up our development and get to locations we could not attain earlier,” he stated in an interview. “We need to have a deeper penetration into excessive development, excessive earnings markets,” he stated.

A profitable itemizing of Anghami would add to a string of main expertise offers within the Center East that started with acquisitions of native companies by Uber Applied sciences Inc. and Amazon.com Inc.’s PSPCs are sometimes shaped to permit non-public firms to lift contemporary funds to develop and register instantly with out having to undergo the costly and time-consuming preliminary public providing course of.

Startup increase

Regardless of the shockwaves of the coronavirus pandemic, regional startups have attracted about $ 1 billion in funding in 2020, 13% greater than the earlier yr, in response to Dubai-based Magnitt Inc.

Anghami moved its headquarters from Lebanon to the capital of the United Arab Emirates earlier this yr in partnership with the Abu Dhabi Funding Workplace. It was a coup for Abu Dhabi, which was courting tech firms and startups as a part of its efforts to diversify the oil-dependent economic system.

Anghami, based in Beirut in 2012, has grown into one of many area’s hottest streaming platforms. It delivers round 1 billion streams monthly, delivering 57 million songs to over 70 million registered customers. With places of work within the Arab world, Anghami is combating for regional hegemony with Spotify Know-how SA and Deezer SA.

Anghami shareholders embody regional enterprise capital companies and strategic shareholders, comparable to Center East Enterprise Companions, Samena Capital, Emirates Built-in Telecommunications Co., MBC Group and Etihad Etisalat Co. Collectively they personal about 68% of the corporate, the remainder being managed by the founders.

VMAC is headed by CEO F. Jacob Cherian, former associate of JPMorgan Chase & Co., and co-founders Abhayanand Singh, head of the Singapore-based media funding agency behind SPAC, and Saurabh Gupta, former banker and co-producer of a number of movies. Vistas began buying and selling on the Nasdaq inventory trade in August after its $ 100 million IPO.

Shuaa Capital invests in Music Tech Anghami streaming service

Anghami labored final yr with funding financial institution JPMorgan to lift contemporary capital and discover strategic choices because it sought to increase, sources informed Bloomberg on the time. Extra lately, Shuaa Capital has additionally invested within the music platform.

DeNovo Company, based mostly in Dubai Advisers acted as monetary advisor to VMAC and its guardian firm Vistas Media Capital.





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