Saudi Arabia-based quick commerce firm Ninja is in discussions with potential investors to raise funds at a valuation exceeding $1 billion, according to sources familiar with the matter.
The funding round is being led by Riyad Capital, with the deal potentially closing as early as this month. Representatives for Ninja and Riyad Capital declined to comment on the matter.
The planned fundraising showed strong investor interest in tech-enabled businesses with clear paths to public listings amid a broader surge in initial public offerings (IPOs) across Saudi Arabia’s stock market.
Ninja which currently operates in Saudi Arabia, Bahrain, Qatar, and Kuwait and is also preparing for an IPO by 2027, the sources said.
Riyad Capital’s involvement reflects its continued trust in the Middle East’s startup ecosystem as the company has previously invested in technology firms such as Foodics, Sure Global Tech, and Unifonic.
In 2016, Riyad Capital launched one of Saudi Arabia’s first venture capital funds, the Riyad Taqnia Fund, to support tech-driven enterprises in the region.
Ninja’s business model focuses on rapid delivery of products, ranging from groceries to pet supplies, leveraging a network of local fulfillment centers. The company’s expansion into neighboring Gulf markets highlights its ambition to capture a larger share of the region’s growing e-commerce sector.
Surge in IPO Activity
The anticipated funding round for Ninja comes amid a wave of IPOs in Saudi Arabia, fueled by investor demand for high-growth technology stocks. Saudi Arabia’s stock exchange has been attracting listings from tech unicorns—startups valued at over $1 billion—as part of the kingdom’s broader strategy to diversify its economy beyond oil revenues.
In a related development, Tabby, a fintech unicorn in the Middle East, has hired banks to manage its IPO, while technology services firm Ejada Systems Ltd. is exploring a public listing at a valuation of up to $1.5 billion.
The growth of Saudi Arabia’s IPO market aligns with the Vision 2030 initiative, which aims to transform the kingdom into a global investment powerhouse. The surge in tech IPOs is also seen as a strategy to attract international investors and bolster the kingdom’s non-oil revenue streams.
Challenges Ahead
Despite its ambitious growth plans, Ninja faces significant challenges, including intense competition in the quick-commerce sector and the operational complexities of managing cross-border logistics in the Gulf.
The company’s ability to scale efficiently and achieve profitability will be critical to sustaining its valuation and ensuring a successful IPO by 2027.
Market analysts suggest that a successful funding round at a $1 billion valuation would solidify Ninja’s position as one of the leading players in the Middle East’s rapidly evolving e-commerce landscape. However, the firm will need to balance aggressive expansion with cost control to achieve sustainable growth.
As Ninja advances its funding discussions, all eyes will be on how the company navigates the competitive pressures and prepares for its planned IPO in 2027.
