Ninja’s , a Saudi Arabia-based quick commerce startup, is reportedly in discussions with investors to secure funding that would value the company at over $1 billion. The investment round is being led by Riyad Capital and could conclude as early as this month, according to sources familiar with the matter. If successful, this funding round could propel Ninja into the coveted “unicorn” status, marking a significant milestone for the Middle East’s burgeoning startup ecosystem.
Company Background and Expansion
Founded in 2022 by Ebrahim Al-Jassim, the original founder of HungerStation, Ninja has rapidly expanded its operations across the Kingdom of Saudi Arabia. Leveraging Al-Jassim’s extensive experience in the delivery sector, Ninja has built a robust infrastructure that promises ultra-fast delivery times and a seamless customer experience. Within four months of its launch, the company became fully operational in Riyadh, Jeddah, and the Eastern Province, covering nearly 50% of the country’s population.
Ninja offers a diverse range of products, including groceries, pet food, beauty items, and household essentials, with an average delivery time of just 25 minutes. The company’s success is attributed to its efficient logistics network and advanced technology stack, which includes predictive algorithms for inventory management and route optimization. This focus on technology-driven efficiency has enabled Ninja to maintain a high customer retention rate and scale rapidly.
The startup has also extended its services to neighboring Gulf countries, including Bahrain, Qatar, and Kuwait. This regional expansion underscores Ninja’s ambition to establish a strong presence in the Middle East’s quick commerce sector. By leveraging its scalable logistics model, Ninja has been able to replicate its success across borders with minimal operational hiccups.
Funding History and Financial Performance
Ninja’s funding journey began with a pre-seed round led by Bunat Ventures, followed by a $30 million seed round that saw participation from Ground Up Ventures, Bunat Ventures, and VEST Investment Company. This capital influx allowed the company to accelerate its expansion plans and refine its technology infrastructure. The efficient use of funds has been instrumental in Ninja’s ability to achieve positive unit economics at a relatively early stage, setting it apart in a market often plagued by cash burn and low margins.
The company’s financial performance has also been impressive, with revenue growth exceeding industry expectations. Ninja’s ability to maintain profitability on a per-order basis is a testament to its operational efficiency and the strength of its business model. Unlike many of its peers in the quick commerce space, which struggle with high operational costs and thin margins, Ninja has managed to strike a balance between growth and profitability.
Leadership and Strategic Vision
At the helm of Ninja is Ebrahim Al-Jassim, whose leadership has been pivotal in shaping the company’s strategic vision. Al-Jassim’s experience as the founder of HungerStation, which was fully acquired by Delivery Hero in 2023 for $297 million, has provided Ninja with a significant competitive edge. His insights into the local market dynamics and consumer behavior have been instrumental in Ninja’s rapid growth.
Under Al-Jassim’s leadership, Ninja has focused on building a sustainable business model that prioritizes customer satisfaction, operational efficiency, and profitability. The company’s management team comprises a mix of local and international industry veterans, each bringing specialized expertise in logistics, technology, and finance. This diverse leadership team has been a key driver of Ninja’s success, enabling it to navigate the complexities of the Middle Eastern market effectively.
In line with its strategic vision, Ninja has invested heavily in technology, particularly in areas like artificial intelligence and machine learning. These investments have been directed towards optimizing delivery logistics, enhancing inventory management, and personalizing customer experiences. The company has also adopted a data-driven approach to decision-making, using analytics to refine its marketing strategies and improve customer retention.
Market Context and Competition
The quick commerce industry in Saudi Arabia is experiencing rapid growth, fueled by rising consumer demand for fast and convenient delivery services. As one of the pioneers in this space, Ninja has capitalized on this demand by offering a wide range of products with ultra-fast delivery times. The company’s entry into the food delivery segment in 2024 positioned it in direct competition with established players like HungerStation and Jahez.
Despite the competitive landscape, Ninja has managed to carve out a significant market share by differentiating itself on speed, reliability, and a seamless customer experience. The company’s ability to deliver orders in under 30 minutes, coupled with its wide product assortment, has resonated well with urban consumers seeking convenience. Additionally, Ninja’s focus on operational efficiency has allowed it to keep delivery costs in check, further enhancing its competitive positioning.
The quick commerce sector in Saudi Arabia is projected to grow at a compound annual growth rate of over 20% for the next five years. This growth is being driven by factors such as increasing smartphone penetration, higher disposable incomes, and a shift in consumer preferences towards online shopping. Against this backdrop, Ninja’s ambitious expansion plans and efficient business model make it well-positioned to capitalize on the growing market opportunity.
Challenges and Risks
However, Ninja’s rapid expansion is not without challenges. The quick commerce industry is notorious for its razor-thin margins and high customer acquisition costs. Balancing growth with profitability will require Ninja to continue optimizing its logistics network and managing operational expenses effectively. Additionally, the rising cost of last-mile delivery, driven by higher fuel prices and labor costs, could pose a risk to Ninja’s margins.
Competition from well-funded players like Careem Now and Jahez, which have deep pockets and established customer bases, is another potential hurdle. To stay ahead, Ninja will need to double down on its technology investments and explore new revenue streams, such as subscription models or partnerships with local businesses.
Regulatory challenges could also emerge as a potential risk factor. With Saudi Arabia increasingly focusing on e-commerce regulations, compliance with local laws and securing the necessary licenses for operations across multiple countries could become a complex affair for Ninja.
Future Outlook and IPO Plans
Looking ahead, Ninja plans to continue its expansion across the Middle East and North Africa (MENA) region. The company is reportedly aiming for an initial public offering (IPO) by 2027, reflecting its long-term growth strategy and commitment to establishing a prominent position in the quick commerce industry. An IPO would not only provide Ninja with the capital needed to fuel its expansion but also enhance its brand visibility and credibility in the market.
In preparation for the IPO, Ninja is expected to focus on further improving its unit economics and diversifying its revenue streams. Strategic partnerships with local and international brands could play a crucial role in this effort. The company’s emphasis on technology-driven efficiency and a customer-centric approach is likely to remain at the core of its strategy.
As Ninja advances its funding efforts and strategic initiatives, its trajectory will be closely watched by industry stakeholders and investors alike. The company’s rapid ascent underscores the dynamic nature of the quick commerce sector in Saudi Arabia and the broader MENA region. If Ninja can successfully navigate the challenges ahead, it could set a new benchmark for quick commerce startups in the region, potentially inspiring a new wave of innovation and investment in the sector.
