Sanad sells stake in Jordanian start-up POSRocket to Foodics

The fund said it had realised strong commercial returns through the stake sale

Ahmad Al Zaini, left, chief executive and co-founder of Foodics, and Zeid Husban, chief executive and founder of POSRocket. PA

The Sanad Fund for MSME sold its shares in POSRocket, following the Jordanian food technology start-up’s acquisition by Saudi company Foodics.

The commercial terms of the transaction, which was carried through the second equity sub-fund (ESF II), were not disclosed.

Sanad has realised strong commercial returns through the sale, the Luxembourg-domiciled fund said in a statement on Friday.

We are proud of the impact we have been able to achieve together with POSRocket and are delighted with the divestment

Sanad board chairwoman Daniela Beckmann

“We are proud of the impact we have been able to achieve together with POSRocket and are delighted with the divestment … as it serves as a great example of our support of entrepreneurship in the region,” Sanad board chairwoman Daniela Beckmann said.

“Through this landmark transaction, POSRocket will have the capability to further expand and develop with a renowned brand [Foodics] in the sector and region,” said Ms Beckmann.

Foodics, which provides operating software to restaurant businesses and secured $20 million in venture funding last February to expand, acquired POSRocket in January for an undisclosed sum. The deal allowed it to consolidate its position and become the market leader in Egypt, Kuwait, Oman and Jordan, according to the company.

Start-ups in the Mena region registered record venture capital funding worth $2.6 billion last year through 590 transactions, according to a report by data platform Magnitt. Thirty five start-ups announced exits in 2021, indicating a maturity in the region's start-up landscape.

Founded in 2016, POSRocket offers cloud-based point-of-sale software for restaurants and retailers. It is the second-largest restaurant cloud services provider in the Mena region, the company said.

It was part of the Sanad’s Fincluders Challenge Amman in 2017 and later participated in the Fincluders boot camp – a dedicated mentoring programme to support early stage companies.

“Now powered by Foodics, the POSRocket astronauts are delighted to be joining a larger team and brand … and with access to funding, we are looking forward to a bright future together,” Zeid Husban, POSRocket’s chief executive and founder, said.

“We highly value the contribution from our existing investors including Sanad as they supported us in reaching this important milestone.”

In August, Sanad provided an equity investment of $2 million to POSRocket, taking the total amount of funds raised to $7m. The investment was part of the start-up’s pre-Series B round of $5.1m that was co-led by Sanad and Egypt’s Algebra Ventures. It had raised $1.5m in July 2018.

POSRocket has successfully served over 2,000 MSMEs in the retail, services, and food and beverage industries. Its acquisition will allow “merchants to benefit from Foodics' ecosystem in managing payments, supplies, and capital lending infrastructure”, it said.

Sanad provides debt and equity finance to partner institutions in the Middle East, North and Sub-Saharan Africa to support growth and employment creation in the region’s micro, small, and medium enterprise sector.

Sanad was established in 2011 by Germany’s KfW Development Bank and is backed with funding from the German Federal Ministry for Economic Co-operation and Development. It is also supported by contributions from the European Commission and a diverse group of public international financial institutions and private investors. It launched ESF II in July 2019.