Mena start-up Floward raises $156m in pre-IPO funding round

Company aims to invest more in mergers and acquisitions, and expand its business in the region

Floward plans to invest in local brands that operate in different categories of its target market. Photo: Floward

Floward, a start-up delivering gifts and flowers in the Mena region and the UK, has secured $156 million in funding to expand operations before a planned initial public offering.

The pre-IPO series C funding round was led by Aljazira Capital, Rainwater Partners and STV, Floward said on Tuesday.

The company plans to boost its investments in mergers and acquisitions and further invest in expanding its gifting verticals with the use of technologies such as artificial intelligence.

Floward previously raised $34.2 million, including $27.5 million in June 2021 in a round led by STV and Impact46.

“Our commitment to the region has delivered 50 million flower stems in 2022, created more than 1,000 direct jobs and partnered with more than 400 brands and local talents who have produced some of the best brands on a global scale,” said Abdulaziz Al Loughani, chairman and chief executive of Floward.

The company's valuation has gone up by 3.8 times since its last funding round one and half years ago, he said.

The Covid-19 pandemic, which led to lockdowns around the world, hastened the move to digital services as consumers switched to cashless payments and online shopping.

Globally, the e-commerce market is expected to hit $55.6 trillion by 2027 at a compound annual growth rate of about 27.4 per cent, from an estimated $13 trillion in 2021, data from US-based research firm Imarc Group showed.

The UAE's e-commerce market is expected to be worth $9.2 billion in 2026, up by about 92 per cent from 2021 amid higher online sales, according to a Dubai Chamber of Commerce study.

Regional start-ups have benefitted from this shift in spending habits.

Start-ups in the Middle East, Africa, Pakistan and Turkey raised $7.2 billion through 1,473 deals last year, despite macroeconomic and geopolitical uncertainty, according to a report by data platform Magnitt.

Following the latest funding round, Floward, which was founded in 2017, plans to invest in local brands that operate in different categories of its target market, the company said.

Last year, it bought Kuwait-based Mubkhar fragrances to expand its business in the region.

Faisal AlRahbiny, chairman and chief executive of Rainwater Partners and Marco Mauri, chief investment officer of Aljazira Capital, will join the board of directors of Floward while the general partner of STV, Ahmad AlNaimi, will continue as a board member, Floward said.

“The transaction marks Aljazira Capital’s commitment to enabling local and regional business ventures that make an impact on our society,” said Naif Almesned, chief executive and managing director of Aljazira Capital.