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In a landmark deal for the Middle East's digital economy, Middle East Venture Partners (MEVP) has successfully exited its investment in YOUgotaGift (YGG), as Japanese eGifting giant giftee Inc acquires a controlling 91% stake. This strategic acquisition propels YGG into its next phase of global expansion while cementing its dominance in the GCC's booming digital gift card market.
The transaction represents a full exit for MEVP, which realized an impressive 5x cash-on-cash return on its 44% stake - a testament to the region's growing potential for world-class tech ventures.
"Consumer technology sits at the core of MENA's economic transformation," commented Walid Hanna, MEVP Chairman and Co-CEO. "YGG's journey from seed-stage startup to acquisition target demonstrates how regional innovators can build globally competitive platforms. Our phased investment approach allowed us to capture maximum value while supporting YGG's remarkable growth trajectory."
Founded in 2013 as a pioneer in digital gifting solutions, YGG has grown from UAE startup to regional powerhouse with operations across GCC markets. Its breakthrough came with the 2017 Saudi expansion, where it developed an extensive network of corporate clients and consumers accessing over 6,000 global brands through its innovative HappyYOU multi-brand card platform.
The acquisition marks giftee Inc's strategic entry into the Middle East's high-growth digital gift market, projected by Research and Markets to reach $16.6 billion by 2028. The Tokyo-based company brings extensive Asian market expertise from its operations in Japan, Vietnam, Indonesia and Malaysia.
"Eleven years ago we introduced digital gift cards to this region," said Husain Makiya, YGG CEO & Co-founder. "Today we're honored that our innovation-led approach has attracted a partner like giftee who shares our vision for transforming how businesses and individuals connect through digital prepaid solutions."
The deal creates significant synergies - giftee gains immediate access to MENA's rapidly digitizing markets through YGG's established platform and technology infrastructure. Meanwhile, YGG will leverage giftee's international experience and resources to accelerate product innovation across existing markets.
Current management will remain at the helm ensuring continuity during this new chapter of growth - combining local market leadership with global operational expertise to redefine digital commerce experiences across multiple continents.
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