Guest Talk: Mr. Amit Marwah, Head of Strategy and Investments at GCC based Investment Group, Dayim Holdings

India has the third largest number of technology-driven start-ups in the world, trailing behind the US and the UK. However, the question we need to ask is – why successful Indian start-ups are not expanding to international markets? The South east Asian countries, the UK and the US were traditional hubs for Indian entrepreneurs & start-up founders, they should now look towards Middle Eastern countries. Middle East is pragmatically the best market for expansion, given its strategic geographic location, proximity to India, similar demography, relaxed tax regulations, large Indian Diaspora and access to local funding.

Owing to a large population, growing smartphone penetration and change of buying habits, the Middle East e-commerce market is set to show exceptional growth and become one of the world’s fastest growing online markets, with UAE and Saudi Arabia taking leadership positions. Economic reforms, diversification and improvement in labor laws coupled with steady growth in internet penetration will propel the e-commerce market to new heights in the next decade. The market offers tremendous potential for rapid scaling provided companies overcome entry barriers, local sponsorship restrictions and cultural sensitivities.

The need for a strong local strategic partner for regulatory or market access purposes is a critical factor to consider before entering in the Middle East. One such platform is Dayim Holdings, established in 2006 as a vehicle to launch international companies and start up concepts with a distinct value add service for Saudi Arabia, UAE and the surrounding GCC markets. While we are not dedicated to a particular sector, we always try to identify new businesses which are either synergistic with our portfolio, or bring a unique concept to the Middle Eastern Market.

Within a span of 10 years, Dayim Holdings have been able to establish a number of successful Joint Ventures with International firms from India, USA, France, Sweden, Spain and the UK. All these Joint ventures are extremely successful and are in top five players in their respective sectors. The record is 100% as all the ventures are formed after rigorous in-house research and road shows involving
meetings with prospective clients, competitors, financial institutions and consultants. Besides investing in them, Dayim Holdings also provides the affiliated companies with continuous assistance to grow, expand and optimize performance through process and efficiency improvements. We look to assist our partners with every aspect of setting up and running of the businesses day to day.

In recent years, entrepreneurs in the Gulf States have launched new products, businesses and inspired talks of replicating the startup scenes in America and Europe. Start-ups from the region have shown great promise with big exits. One such example is the recent acquisition of Souq.com, an e-commerce player that got acquired by Amazon for close to $800 million.

With the recent arrival of another e-commerce platform Noon.com, a JV between Saudi Arabia’s Public Investment fund and a group of prominent Gulf investors, a price war is set to trigger and likely alter how shopping is conducted in the consumerist culture of the Middle East. The time is opportune for Indian start-up to look towards establishing presence in the Middle East and give their organizations the best chance to emerge as international ventures which can also provide a gateway for further expansion into Europe.

UAE and Saudi Arabia both have a high appetite for innovation and are great next steps for disruptive Indian start-ups with the Investors ready to pay for creativity and disruptive companies across various industries.

At a time when the e-commerce sector in India is getting relatively competitive and a number of serious players are entering the market, Indian startup and entrepreneurs should look towards the Middle East market, which is still behind the curve and offer tremendous opportunities for growth.

The author has played an instrumental role in establishing various multimillion dollar corporations in the last 10 years, across the Middle East, in partnerships with major international brands. The author holds an MBA in International finance & Strategy from Delhi University and a CFA charter from US. He has extensive transaction experience in the field of strategy consulting, Venture Capital & Private Equity Investments.