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Khaleej Times
27-04-2025
- Business
- Khaleej Times
UAE listings to get more diverse with tech startup's IPO on the cards
The UAE's vibrant initial public offering (IPO) market is poised to welcome a new player, as Cafu, a leading fuel delivery app, reportedly explores a stake sale that could mark its debut on the UAE's stock exchanges. According to Bloomberg, the startup, founded in 2018 by Emirati tech entrepreneur Rashid Al Ghurair, is in early discussions with Lazard Ltd. to facilitate the potential IPO. While no final decisions have been confirmed, the move underscores the UAE's growing appeal as a hub for diverse, tech-driven listings. Cafu's prospective IPO would add a digital tech dimension to the UAE's IPO landscape, which has traditionally been dominated by energy, real estate, and retail giants. Vijay Valecha, chief investment officer at Century Financial, noted, 'Cafu's market debut would diversify the UAE's IPO portfolio, showcasing the region's evolving startup ecosystem.' Since its inception, Cafu has set a benchmark for integrating traditional services into the digital space, inspiring new entrants in the Gulf's tech sector. Cafu had disrupted the fuel delivery market by offering petrol and diesel at pump-equivalent prices, with no markup. Initially launched with a modest delivery fee (ranging from Dh10 to Dh20), the company waived these charges during the pandemic to support customers. However, a recent circular announced the reintroduction of tiered delivery fees: Dh20 for priority delivery (within 20 minutes), Dh16 for standard delivery (30 minutes to two hours), and Dh12 for overnight orders (midnight to 6 a.m.). These changes reflect Cafu's efforts to balance profitability with customer affordability. Beyond fuel delivery, Cafu has expanded into mobile car washes, battery replacements, tyre changes, engine oil services, emergency rescues, and electric vehicle recharging. The company also caters to maritime clients, delivering fuel to boats and watercraft at select Dubai marinas. Its international footprint includes operations in Canada, signaling ambitions beyond the Gulf. Additional revenue streams come from third-party advertising and loyalty programs integrated into the app, further strengthening its financial model. For Lazard, which recently established a UAE office, advising Cafu's potential IPO could cement its foothold in a region where competitors like Rothschild have long held sway. A successful transaction would highlight Lazard's growing influence in the Gulf's competitive advisory market. The UAE's IPO market has seen a remarkable surge in recent years, driven by the country's economic diversification and robust investor appetite. In 2024, the Gulf region recorded its highest IPO volumes ever, with 53 listings raising $13.2 billion, according to a PwC report. The UAE alone accounted for 47 per cent of the region's proceeds, with seven IPOs, including Talabat Holding, Lulu Group, and NMDC Energy, generating $6.2 billion. This year, banking sources project up to eight UAE IPOs, potentially raising $10 billion, with companies like Etihad, Dubizzle, and in the pipeline. The first IPO of 2025, Alpha Data, has already set a strong tone. Cafu's potential listing aligns with the UAE's broader economic strategy to foster innovation and reduce reliance on oil. The Arab world's second-largest economy has attracted global investors with its business-friendly policies and dynamic capital markets. The Dubai Financial Market and Abu Dhabi Securities Exchange have become magnets for companies seeking to tap into the region's liquidity and growth potential. While details of Cafu's IPO—such as the stake size, valuation, and timeline—remain undisclosed, its entry into the public market could inspire other tech startups to follow suit.
The National
26-04-2025
- Automotive
- The National
UAE's IPO pipeline set for growth with potential Cafu stake sale
The UAE's initial public offering pipeline is set to become more diverse as Dubai-based fuel delivery start-up Cafu told Bloomberg that a stake stale is on the cards amid strong investor appetite for new listings in the Emirates. The fuel delivery and vehicle service company is looking to raise funds by selling a stake in the business for the first time, Bloomberg reported, quoting sources. The start-up is working with financial advisory and asset management firm Lazard for the IPO, but the discussions are at a preliminary stage, and no final decisions have been made, Bloomberg added. However, the company has not confirmed the exact details of the amount or the date of the IPO. Cafu has been delivering fuel to customers' doorsteps at the same price as petrol stations, without charging an extra markup. In recent years, it has also introduced an at-home car services package, which consists of on-demand battery, tyre change services, engine oil change, and emergency rescue services. The company was launched in Dubai in 2018 by entrepreneur Rashid Al Ghurair, who comes from one of Dubai's most prominent business families, and has operations in Oman and Egypt. Cafu charged basic delivery fees from 2018 until the start of the Covid-19 pandemic. However, since the pandemic, the company waived its delivery charges. But in a shift in its business model, the company said in a circular to clients on Thursday that it will reintroduce fuel delivery service charges. 'Keeping a service like this running, citywide 24/7, … takes a lot behind the scenes. We've absorbed those costs for as long as we could. Now to continue delivering the experience you rely on, we are reintroducing a small delivery fee,' the Cafu note said. The priority slab, which promises full delivery in 20 minutes, will be charged at Dh20 per delivery. Standard delivery, between 30 minutes and two hours, will be charged at Dh16. For overnight orders between 12am and 6am, a Dh12 fee will be applied, the note stated. 'The UAE's mega IPO bull wave will likely see another addition to its kitty. Interestingly, for Lazard, which has recently opened its office in the UAE, the transaction's success would mark its entry into the region, where its prolific competitors like Rothschild hugely dominate,' said Vijay Valecha, chief investment officer at Dubai investment company Century Financial. 'Apart from these revised slabs, the company has already earned revenue streams from multiple verticals introduced over the past few years. These include the battery, car wash, tyre change, engine oil replacement, and emergency rescue services. The app also allows for third-party partner advertisement, a likely advertisement and loyalty-related revenue stream for the company.' While Cafu is the leading fuel delivery operator in this region, globally, the space is dominated by a couple of players, Mr Valecha said. The latest market reports point to North America as the biggest market for this segment. The US is dominated by many apps, including Yoshi, Gaston, Ez Fill, Booster and Fuelster. Besides these start-ups, major American oil companies Shell and Mobil have introduced services in this segment, he added. The global on-demand fuel delivery market size is projected to touch $2.37 billion by 2033, recording a compound annual growth rate of 15.97 per cent from 2025 to 2033, according to market intelligence firm Business Research Insights. There has been a listings boom in the UAE in the past few years as the Arab world's second-largest economy continues to grow amid diversification efforts. There were seven IPOs across the UAE last year, including Talabat Holding, major retailer Lulu Group, ADNH Catering, NMDC Energy and Alef Education. IPOs in the UAE accounted for 47 per cent, or $6.2 billion, of total Gulf proceeds last year, PwC said in a report. Overall, 2024 saw the highest Gulf IPO volumes on record, with 53 listings across the region and a total of $13.2 billion raised, the report said. In 2021, the Dubai Financial Market unveiled an incentives programme to encourage new IPOs from private sector companies in key economic sectors that contribute to the country's gross domestic product. The incentives included financial support to the cost of listing on the bourse, post-listing support through participation in its international roadshows regionally and globally, and a three-year waiver on listing fees. The same year, Dubai revealed plans to list 10 government and state-owned companies on the DFM as part of a broader strategy to double the financial market's size to Dh3 trillion.
Zawya
25-04-2025
- Business
- Zawya
Dubai fuel delivery operator CAFU mulls stake sale
CAFU, the Dubai-based fuel delivery operator, is mulling a stake sale as the company looks to raise funds. According to a Bloomberg report, the fuel delivery service is reportedly collaborating with financial advisory and asset management firm Lazard, Inc for the stake sale. Lazard established its offices in Abu Dhabi, earlier this month in a bid to deepen its presence in the MENA region. Founded in 2018 by Emirati entrepreneur Rashid Al Ghurair, CAFU delivers fuel at gas station prices and has expanded to Canada. News of the stake sale came shortly after CAFU announced it was rolling out delivery charges, which had been suspended in the aftermath of COVID-19. Diverse IPO offering According to Vijay Valecha, Chief Investment Officer, Century Financial, a possible CAFU stake sale would bring a diverse offering to the UAE's IPO pipeline. 'For new entrants to the UAE and Gulf digital tech startup space, CAFU's business model idea has served as a benchmark for best integrating and evolving traditional business models into the new online and digital tech space,' Valecha said. Globally, CAFU's business model has served well in several countries, with Valecha calling North America as the biggest market for this segment with services including Yoshi, Gaston, Ez Fill, Booster & Fuelster, along with American oil companies Shell and Mobil having also introduced their services in this segment. For the UAE, a possible listing by CAFU tracks with analyst data that have pointed out a growing theme around technology in the short to mid-term IPO pipeline. (Writing by Bindu Rai, editing by Seban Scaria)
What's On
24-04-2025
- Automotive
- What's On
Take note: Petrol service Cafu is bringing back delivery fees
Fun while it lasted, Cafu… Fuel delivery service Cafu has been blessing us with free delivery on their petrol service since the height of the nation-wide lockdown in 2020, but that is now coming to an end because they're bringing back delivery fees starting today. The free delivery launched the service into insane popularity at the peak of the pandemic with the residents of UAE, given the convenience and affordable pricing. No matter where you where, when you were, Cafu would reach you, and that too free of charge. Now, they are making 'a small change' and bringing back the fees in a bid to keep up the exceptional quality of their service, as explained in a message sent to customers on the mobile app. The message said that 'keeping a service like this running city-wide, 24/7, with the level of care and quality you expect, takes a lot behind the scenes.' So far, the company has been the one to absorb the cost incurred, adding that 'it's not a decision we made lightly and it's not one we are hiding behind. It's a step we believe is fair to keep the service strong, the experience smooth and your time protected.' What are the new fees? Customers will now pay Dhs20 for priority delivery fee for a waiting period within 20 minutes, Dhs16, a standard delivery fee for a waiting period from 30 minutes to one hour, and Dhs12 for an overnight order placed from 12 midnight to 6am. The company has also confirmed that the charges will apply on top of the standard cost of the fuel, which is charged as per the blanket fuel prices across all petrol stations in the country. Just a simple addition. Cafu was founded in 2018 by tech entrepreneur Rashid Al Ghurair, and started with a simple fuel service that has now grown into a one-stop-shop for all your car care needs, delivered to your doorstep. The company has added mobile car wash, oil change, battery and tyre services to their roster of services and in 2022, it also introduced an emergency fuel service. Late last year, Cafu began offering a new mobile electric vehicle charging solution and introduced a priority service that delivered fuel in less than 20 minutes. @mycafu Images: Socials > Sign up for FREE to get exclusive updates that you are interested in
Khaleej Times
23-04-2025
- Automotive
- Khaleej Times
UAE: Fuel service Cafu to reintroduce delivery fees from April 24
UAE fuel delivery service Cafu will reintroduce delivery fees starting from 6am Thursday, April 24, a company call centre agent confirmed to Khaleej Times on Wednesday. Cafu has also sent a note on the app to its customers saying there is 'a small change (happening) so we can keep doing things right. 'For years, we've delivered fuel and car services to your doorstep — fast, smooth, and free of delivery charges. But let's be honest, keeping a service like this running city-wide, 24/7, with the level of care and quality you expect, takes a lot behind the scenes,' added the note from Cafu. Cafu confirmed the following delivery charges will apply on top of the fuel cost which remains the same as those in any petrol station across the UAE: Dh20 - priority delivery fee for a waiting period within 20 minutes Dh16 - standard delivery fee for a waiting period from 30 minutes to one hour Dh12 - for overnight order, i.e., order placed from 12 midnight to 6am 'Keeping the service strong' 'It's not a decision we made lightly and it's not one we are hiding behind,' the company wrote in its note to customers. 'It's a step we believe is fair to keep the service strong, the experience smooth and your time protected.' The company also added that keeping their service running citywide around the clock required a lot of work behind the scenes. Khaleej Times has reached out to Cafu for a comment regarding the new charges. Founded in 2018 by tech entrepreneur Rashid Al Ghurair, Cafu started as a fuel delivery service. In 2020, at the peak of the pandemic, the company decided to offer free delivery service — a move that saw its popularity catapult across the country amid a nation-wide lockdown. Since then, the company has introduced mobile car wash, oil change, battery and tyre services. In 2022, it also introduced an emergency fuel service. Late last year, Cafu began offering a new mobile electric vehicle charging solution and introduced a priority service that delivered fuel in less than 20 minutes. Loyal customers Dubai resident Sheena G. was introduced to Cafu when she found herself stranded on the roadside after her car ran out of petrol last year. 'Although I had heard of them, I had never tried them out. But at that time, I direly needed their service,' she recalled. 'Within 15 minutes of Whatsapping them, they brought petrol and I was all too happy to pay the premium they charged me for it. Since then I have been a loyal customer.' She said she hopes to continue using the service. 'If the delivery fee is something nominal, I don't mind using it,' she said. 'I have three children and I am doing all the drop off, pick-ups and grocery shopping. So I am on the go all the time. I don't mind paying a premium for the comfort of having my fuel delivered to me. Also, if you book an overnight service, there is a five percent cashback. So unless the delivery fees are very steep, I hope to continue using the service.' Indian expat Mohammed Khan said that he has adopted a wait and watch policy. 'I have not been to a petrol station in two years,' he said. 'I will see how much the delivery charges will be and then make a decision whether I will continue using the service or whether I will be going back and queuing up at the petrol station."
