Saudi delivery services company Mr Mandoob has announced its intention to launch an initial public offering on the Saudi stock market during the first half of 2026. Chief Executive Officer Obaid Al-Enazi confirmed the plan, which targets a market valuation exceeding SAR 800 million, equivalent to over $213 million. This strategic move highlights the company's rapid ascent since its 2020 launch and reflects the burgeoning growth within the Kingdom's technology and logistics sectors.
From Self-Funded Startup to Market Contender
The company's journey began with a modest SAR 1 million in self-funding from its founders before it successfully attracted significant external capital to fuel its expansion. Over the past four years, Mr Mandoob has raised a total of SAR 85 million, or approximately $22.7 million, through several key investment rounds. This capital has been instrumental in scaling its operations, developing its technology, and expanding its geographic footprint across Saudi Arabia.
These investments have yielded impressive results, enabling the platform to build a massive customer base that now exceeds 14 million users. This scale firmly establishes Mr Mandoob as a leading consumer-facing delivery platform in the highly competitive Saudi market. The company's ability to attract and retain such a large user base underscores the growing consumer demand for convenient, digitally-enabled services throughout the Kingdom.
Strategic Preparations for a Public Listing
In preparation for its public debut, Mr Mandoob is diligently working to meet all necessary regulatory requirements for a listing on the Saudi exchange. Management is coordinating closely with the relevant authorities to ensure a smooth and compliant process ahead of the 2026 target. Al-Enazi has framed the IPO as the next logical step in institutionalizing the business, enhancing governance, and securing long-term capital access.
Beyond regulatory compliance, the company is focused on strengthening its core operational and technological capabilities to bolster its market position. Key initiatives include enhancing its technology backbone to improve speed and reliability, which are critical differentiators in the delivery sector. Simultaneously, Mr Mandoob is expanding its strategic partnerships to create a more robust ecosystem and enhance its service offerings for its vast customer base.
Navigating a Dynamic and Competitive Market
Mr Mandoob's IPO ambitions are set against the backdrop of a dynamic and evolving Saudi delivery market. The sector is marked by intense competition from both global giants and local startups, which has spurred aggressive pricing strategies and driven some smaller players to exit. According to Al-Enazi, this competitive pressure and ongoing consolidation are ultimately fostering a more resilient and innovative industry landscape.
The move also aligns with the maturation of Saudi Arabia's capital markets, which have become increasingly welcoming to growth-stage companies. Small and medium-sized enterprises now represent around 30% of listed firms, with a growing number of startups graduating from the parallel Nomu market to the main board. This trend provides a clear and viable pathway for venture-backed companies like Mr Mandoob to access public capital.
The planned 2026 listing represents both a culmination of Mr Mandoob's initial growth phase and the foundation for its next chapter of expansion. If successful, the IPO will not only inject new capital into the business but also add another prominent consumer technology firm to the Saudi stock market. This would further reinforce the Kingdom's strategic goal of cultivating globally competitive digital platforms from within its vibrant domestic economy.