Fintech & Ecommerce

LuLu Group Raises $2.72 Billion

LuLu Group International, which is based in Abu Dhabi and owns one of the largest hypermarket chains in the Middle East, is raising 10 billion dirhams (about $2.72 billion) to refinance debt ahead of the expected initial public offering (IPO).

Lulu Group Raises $2.72 Billion

According to media reports citing unnamed sources, the company intends to transform the capital structure. The firm also plans to expand the scope of its activities and improve its capabilities before the listing, which is scheduled for next year. Initially, the company intended to list in 2023.

A representative of LuLu Group International told the media that the raised financing will be used to repay existing debts and expand the company’s presence by launching 80 new hypermarkets in the Persian Gulf, Egypt, and beyond. The firm also plans to expand its supply chain and e-commerce capabilities.

A representative of LuLu Group International said that the company intends to capitalize on emerging opportunities and raise its global presence to new heights through IPO plans.

Currently, the firm’s management structure includes not only business in the field of shopping centers but also shipping, real estate, hotels, and other sectors. The company’s annual revenue is about $8 billion. Currently, the number of employees of the firm is 65 thousand people throughout the Middle East, Asia, the USA, and Europe. In 2020, the company’s value was more than $5 billion.

In November last year, LuLu Group International announced the beginning of a partnership with Amazon. As part of this partnership, the company offers online grocery shopping services in the United Arab Emirates through a branded storefront on the local website of the e-commerce giant.

Yusuff Ali, Chairman of the Management Board and Managing Director of LuLu Group International, 2022 said that his firm adheres to the concept that it needs to listen to customers and adjust the business model depending on their preferences regarding the process of making purchases, which change periodically. He also said that cooperation with the e-commerce giant will allow the company to offer an innovative online solution for the purchase of food.

The partnership with Amazon expands the scope of LuLu Group International’s presence in the field of e-commerce in the UAE, where the popularity of shopping on virtual platforms and hybrid purchasing formats is currently growing.

The results of a special study indicate that consumers in the UAE demonstrate a high level of readiness to trade using mobile devices. Last year, more than 60% of local buyers used a mobile phone at least once to purchase goods.

As we have reported earlier, Serve Robotics Raises $30 Million.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.