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BinDawood Holding subsidiary acquires majority share in e-grocery partner

BinDawood Holding

BinDawood Holding subsidiary acquires majority share in e-grocery partner

Acquisition in line with BinDawood Holding’s vision to optimize operations, accelerate ecommerce business growth and strengthen omnichannel presence

Jeddah, Saudi Arabia; 27 March 2022 – BinDawood Holding announced today the signing of a definitive agreement through its subsidiary, Future Technology Retail, to acquire 62% of the shares of International Applications Trading Company (IATC), the company which developed and currently operates BinDawood Holding’s Danube and BinDawood ecommerce channels. Future Technology Retail will make an immediate payment of SAR 107.5 million with an additional payment in FY 23 -subject to the achievement of certain revenue milestones in FY 22- and a further payment in FY 26 subject to achieving certain profitability parameters in FY 25.  The transaction, subject to customary closing conditions and completion of regulatory approval, is expected to close in the second half 2022. The Boards of Directors of BinDawood Holding and the shareholders of IATC have approved the transaction.

As part of the transaction agreement, the founder and the Management Team of IATC will remain with the Company and BinDawood Holding will invest a further amount of up to SAR 160 million in IATC over a two-year period to support the development of the platforms and the roll-out of a network of state-of-the-art dark stores and fulfillment centers to optimize operations, fully integrate the customer experience and provide shorter lead delivery times. The additional investment will increase the Company’s shareholding in IATC, the precise quantum of which will depend on the valuation of IATC as determined after the finalization of its FY 22 results.

Ahmad AR. BinDawood, Chief Executive Officer, BinDawood Holding, said: “Consumer behaviors have been transformed by the COVID-19 pandemic, with the grocery retail landscape around the world witnessing a paradigm shift. Businesses need to rapidly upscale their digital operations to embrace the change and reach customers whenever they want and wherever they are. The acquisition of a majority stake in IATC is a major step towards enhancing our ecommerce offering and strengthening our omnichannel presence – enabling BinDawood Holding to control the future growth of its business in an increasingly digitally-connected world. Expanding digital transformation and technical solutions is in line with Vision 2030.  Saudi Arabia is amongst the largest and the fastest growing ecommerce markets in the region, with e-grocery shopping still in a nascent phase. I am confident that this strategic acquisition will put BinDawood Holding in a prime position to capitalise on the growth of the sector.”

The move to acquire a majority stake in IATC fits into the Company’s strategy to fully own the customer experience, thereby gaining insightful knowledge on consumer behaviors and trends, which in turn will help in optimizing operations. The total grocery retail market in Saudi Arabia is forecasted to grow at a CAGR of 2.8% between 2020 and 2027 to reach SAR 177.5 billion1, while the total grocery ecommerce penetration is expected to grow from 0.8% to 3.5% by 20272. The Company’s vertical integration will support its vision on realizing its goal of leading the e-grocery market in Saudi Arabia, with ambitions of controlling 30% by 2028.

Majed M. Al Tahan, Founder & CEO, IATC added: “As digital transformation across the retail industry continues to accelerate, the expectations at each stage of the customer journey are continuously evolving and becoming more demanding. Businesses which see the unprecedented growth opportunities presented through the adoption of technology and innovation are the ones which will move forward and succeed – deepening engagement with customers and in turn building a reputable brand. As we become part of BinDawood Holding, we are excited to take the technology-led transformation of the Danube and BinDawood ecommerce channels to the next level and I am personally looking forward to seeing how our team can drive deeper and broader engagement with the customer.”

BinDawood Holding has a long legacy of embracing innovation and technology in the grocery retail space and is considered a pioneer in e-grocery shopping across Saudi Arabia. The Company was a first mover in the e-grocery market by launching Danube Online and the Danube App in 2017, which went on to become one of the leading ecommerce grocery platforms in the Kingdom.  The subsequent launch of the BinDawood App in 2019 has enabled the Company to further cater to unmet online shopping needs in the Kingdom while providing users a smooth, reliable and secure service.


  1. Euromonitor, 2020
  2. KPMG Analysis, 2020

The analysis was performed in 2020 by KPMG Professional Services for a project awarded by International Apps. Co. Ltd.


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