We are co-leading with FIM partners a $50 million USD (~188m SAR) bridge round in Nana, the leading grocery delivery platform that is continuously enhancing the eGrocery experience.
When we first invested in Nana in early 2020, online penetration of the grocery industry in the Kingdom was reported to be 0.1%. In the 2 years since then, we estimate that online penetration has grown by 6x. As the leading grocery delivery platform in the country with 18% market share, Nana has been a key player in disrupting market dynamics and fundamentally enhancing their shoppers’ experience.
To continue on its mission of empowering households to fulfill their daily, weekly, and monthly grocery needs with a convenient online solution, Nana is doubling down on its dark store model and cementing its position as the fastest growing player in the space. Since the very first pilot, Nana’s dark stores have shown impressive organic growth and user stickiness that well surpass global benchmarks, validating the model’s potential and value for Nana’s customers. Today, NanaExpress, the company’s dark store model, offers 2,000+ SKUs and quick 15 minute deliveries. The company currently covers 90% of Riyadh’s daily grocery needs, and has been growing at an impressive double digit rate week over week. NanaHyper, the company’s marketplace model, offers weekly and monthly grocery needs with 40,000+ SKUs and convenient prices.
This round was co-led by STV and FIM partners, and included co-investments from Quencia Capital, Faith Capital, Jahez, and Sunbulah Group, and previous investors MEVP and Impact46. The proceeds from this fundraise will be used to expand the company’s dark store coverage to include 100% of Riyadh and 150+ locations by the end of 2022, serving all the main cities in the Kingdom and expanding into the regional market. This will cement Nana’s position as the go-to platform for all grocery needs.
The average global online penetration of the grocery industry is 1.8%, meaning that the uncaptured opportunity that exists in the market is at least 3x what it is today. We have full confidence in Sami and the Nana team to continue enhancing the customer experience, and to export their success in the Kingdom across the region.