The MENAP (Middle East, North Africa, and Pakistan) region has emerged as a hotbed for digital innovation, with Saudi Arabia leading the charge in tech-driven entrepreneurship. Jahez Group’s H1 2025 earnings report provides a compelling case study on how regional startups can scale, diversify, and maintain profitability in a competitive market.
This analysis delves into Jahez’s financial performance, strategic moves, and broader implications for the MENAP startup ecosystem, covering entrepreneurship trends, venture capital (VC) interest, and the evolving digital economy.
1. Strong Financial Growth Amidst Market Expansion
Jahez Group, a Saudi-based on-demand delivery and tech platform, reported impressive year-over-year (YoY) growth in H1 2025, reinforcing its dominance in the region’s digital economy.
Key Financial Highlights:
- 38% YoY increase in Net Profit (SAR 58.9M vs. SAR 42.7M in H1 2024)
- 24% YoY growth in Adjusted EBITDA (SAR 87.1M vs. SAR 70.4M)
- 11.8% YoY rise in Gross Merchandise Value (GMV) (SAR 3.44B vs. SAR 3.08B)
- 7% YoY increase in Net Revenue (SAR 1.09B vs. SAR 1.02B)
These figures highlight Jahez’s ability to balance growth with profitability, a rare feat in the high-burn startup world.
Profitability Drivers:
- Improved take rate (15.7% in Q2 2025 vs. 14.6% in Q2 2024) – reflecting better monetization of transactions.
- 60.8% YoY surge in Advertising Revenue – driven by new ad products like “Explore” and “Fawase!” (short-form video reels).
- Cost optimization – Delivery cost per order fell 5.7% YoY due to fleet optimization and better pricing negotiations.
Segment Performance:
- KSA Platforms (Core Market): Contributed SAR 98M in Adj. EBITDA, though down 20.8% YoY due to increased marketing spend.
- Non-KSA Platforms (Bahrain & Kuwait): Losses narrowed 84.7% YoY, signaling improved unit economics.
- Logistics Segment: Adj. EBITDA surged 71.1% YoY, supported by a 143% increase in sponsored drivers (4,508 vs. 1,853 in H1 2024).
Takeaway: Jahez’s financial discipline and diversified revenue streams (advertising, logistics, grocery, retail) make it a blueprint for sustainable scaling in emerging markets.
2. Strategic Expansion: Beyond Food Delivery
Jahez is evolving from a food delivery app into a multi-vertical lifestyle platform, mirroring global trends seen with companies like Grab and Rappi.
Key Strategic Moves:
- Enhanced App Integration: Merged grocery and retail under one platform, leading to:
- 3.9x YoY growth in Grocery GMV (Q2 2025)
- 1.6x YoY growth in Retail GMV (433 new merchants added)
- Entry into Qatar: Post-H1 2025, Jahez agreed to acquire a 76.6% stake in Snoonu, Qatar’s fastest-growing delivery platform.
- New Revenue Streams:
- Blu Store (direct sales), Sol (B2B food supply), Marn (merchant tech solutions) contributed to 64.9% YoY growth in Other Revenues.
Why This Matters for Startups:
- Super-app models work in MENAP – Consumers prefer consolidated platforms.
- Diversification mitigates risk – Relying solely on food delivery is risky (high competition, thin margins).
- M&A as a growth lever – Jahez’s Snoonu acquisition highlights how regional players can expand via strategic buyouts.
3. MENAP’s Startup Ecosystem: Lessons from Jahez’s Playbook
Jahez’s success offers critical insights for entrepreneurs, investors, and policymakers in MENAP.
Venture Capital & Funding Trends
- Profitability Over Hype: Unlike many loss-making startups, Jahez proves that unit economics matter. VCs in MENAP are shifting focus from “growth at all costs” to sustainable scaling.
- Local Investors Leading: Jahez’s backers (including Saudi VC firms) show that regional investors now drive big exits, reducing reliance on Silicon Valley.
- M&A Activity Rising: The Snoonu deal signals more consolidation ahead in MENAP’s tech space.
Entrepreneurship & Market Opportunities
- Beyond Food Delivery: Jahez’s expansion into grocery, retail, logistics, and fintech (via investments) shows that startups must diversify early.
- Saudi as a Launchpad: With 10.8% YoY order growth in KSA, the Kingdom remains the most lucrative market in MENAP.
- Tech-Enabled Logistics: Jahez’s Logi segment (71.1% EBITDA growth) highlights the untapped potential in last-mile delivery solutions.
Regulatory & Macro Factors
- Saudi’s Vision 2030 Push: Government digitalization efforts (e.g., cashless adoption, SME support) are accelerating startup growth.
- Talent & Localization: Jahez’s 4,508 sponsored drivers (up 143% YoY) reflect Saudi’s Nitaqat-driven employment policies.
4. Challenges & Risks for MENAP Startups
Despite Jahez’s strong performance, the report reveals key challenges facing the ecosystem:
Intense Competition
- Rivalry with HungerStation & Careem NOW forces Jahez to spend heavily on promotions (Gross Profit Margin dipped 1.4pp YoY in Q2).
- Price Wars: Average delivery fees fell 20.4% YoY, squeezing margins.
Scaling Beyond KSA is Tough
- Non-KSA markets (Bahrain, Kuwait) still loss-making, though improving.
- Qatar expansion (via Snoonu) is a bet – Can Jahez replicate KSA’s success?
Dependence on External Factors
- Fuel costs, labor laws, and VAT changes impact logistics-heavy models.
- Consumer spending shifts (e.g., Ramadan peaks) create revenue volatility.
5. The Future of MENAP’s Digital Economy
Jahez’s report underscores three major trends shaping the region’s startup landscape:
- Super-Apps Will Dominate – Consumers want one app for food, groceries, retail, and payments.
- Profitability is the New Growth Metric – Investors now prioritize EBITDA-positive startups.
- Cross-Border M&A Will Accelerate – More deals like Jahez-Snoonu as regional players expand.
What Entrepreneurs & Investors Should Watch
- Vertical Integration: Startups should explore adjacent services (e.g., cloud kitchens, fintech).
- Partnerships Over Burn: Jahez’s asset-light logistics model (sponsored drivers) is a smart play.
- Saudi First, Then Expand: KSA’s market depth makes it the best launchpad before regional expansion.
Jahez as a Case Study for MENAP’s Tech Boom
Jahez Group’s H1 2025 results are more than just financial metrics, they reflect the maturation of MENAP’s startup ecosystem. The company’s profitability, diversification, and strategic acquisitions provide a roadmap for other regional tech firms.
For entrepreneurs, the key takeaway is to build sustainably, diversify early, and leverage local partnerships. For VCs, Jahez proves that emerging markets can yield disciplined, high-growth startups. And for policymakers, the report highlights how Saudi-led digital transformation is fueling a new wave of innovation.
As MENAP’s digital economy grows, Jahez’s playbook will likely become the standard for scaling startups in the region.