Bahraini start-up Inagrab, which helps businesses leverage sales using Big Data, is on a mission to hyper-localise market insight as it eyes expansion into Saudi Arabia and Egypt this year.
For Hussain Haji, the co-founder and chief executive of the start-up, the business was a result of success and failure tasted in four previous ventures across sectors such as food and beverage, a lifestyle app as well as logistics.
For Mr Haji, the entrepreneurial itch first began towards the end of 2012 when, as a new father, he quit his full-time job and decided to start a restaurant business - a venture he had to keep under wraps from his father and father-in-law for sometime.
“[That] restaurant failed miserably. Bahrainis, Arabs in general and South Asians in general, the first 'million-dollar idea' they think of is always a restaurant,” says Mr Haji.
In the years that followed, Mr Haji set up a food and beverage supplier start-up Hanker & Nourish that connected smaller players to restaurants. After that folded, Mr Haji developed and launched a lifestyle application Pikadot, where users could chat, order food and optimise all social media feeds under one umbrella.
"That was quite active. In Bahrain alone we had 12,000 active users, which was pretty good. I had raised around $1.5 million in funding. That was in 2015,” he says.
Following a successful exit, Mr Haji set up Tasleem, a logistics application that helped businesses manage delivery shortages during peak hours.
However, during this time he met Mustafa Marhama, a Bahrain-based digital marketing expert who had ideas for a business focused on leveraging data to observe and position how a product or a service moves in the market.
"I felt it was powerful to understand it. If you’re able to understand it, Big Data, then you’re able to help other businesses grow and that’s where the big money is anyway. It wasn’t just for the money, it was for the interest,” says Mr Haji.
With some funding from Bahrain Development Bank, through its Rowad programme, Inagrab was born a matter of weeks after the duo first discussed their idea.
The business evolved from being a mobile app offering price comparisons to one that captured and trawled for data to collate it in one place and aggregate it. From 150,000 users, the app eventually evolved to a business-to-business platform.
"Inagrab the sales model became a connection for businesses to understand where is the best place for them to sell their products on a global level and how to price their products and how to [position] themselves,” says Mr Haji.
With Inagrab, Mr Haji continues his passion for helping businesses generate efficiencies, this timein the realm of sales. The app, with the help of an AI-enabled bot called Betsy reads and interprets data sourced from international database websites and communicates in simple terms how to take actionable steps based on its results. Inagrab’s clients are largely small and medium sized businesses, “first believers”, as Mr Haji refers to them. But the company is also in talks with governments to help manage their exports with the power of Big Data."There are several governments in the region, which need help with exports and they want to recommend to their local businesses which regions to focus on and they need data and that’s exactly what we provide,” he says.
Discussions are ongoing in Bahrain as well as with the UAE, he adds.
While Inagrab builds its own database on the movement of products gleaned from international databases, Mr Haji quickly realised the need for a more localised offering that encapsulates the region’s idiosyncrasies, such as a dependence on word-of-mouth to accelerate sales.
Three months ago, Inagrab launched the Dalooni app, which has backers such as California-based 500 Startups as well as Bahrain Development Bank, allows local businesses to capture data on product movement as well as enable the creation of regional databases.
Already, Dalooni has managed to generate $25,000 in revenues since launch, says Mr Haji, who declined to talk about total number of users on the app.
"By 2020, we’ll generate $1.2m only from Inagrab and from Dalooni in the next two years, we’ll be way above the $15m to $20m revenue margins,” he says.
Over the next couple of weeks, the app will be launched in the Saudi market, with Egypt on the horizon for around the beginning of the second quarter.
For Mr Haji, the ambition is not only to scale up and become a unicorn from Bahrain but also effect a transformational change in terms of work culture regionally.
"Inagrab five years from now will become a unicorn from this region,” he says.
“[But I also want to be] able to change the culture on how start-ups are supposed to operate in the region, and break the whole idea of how private sector should be,” he added.
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
The specs
Engine: 2.0-litre four-cylinder turbo
Power: 178hp at 5,500rpm
Torque: 280Nm at 1,350-4,200rpm
Transmission: seven-speed dual-clutch auto
Price: from Dh209,000
On sale: now
Switching%20sides
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ULTRA PROCESSED FOODS
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- Margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars
- Energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- Infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes
- Many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts
Brief scoreline:
Liverpool 2
Keita 5', Firmino 26'
Porto 0
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions