Dubai-based noon raised USD 500 mn from several backers, including from its founder Mohammed Alabbar, the Public Investment Fund (PIF), and others, sources familiar with the matter told Semafor. The breakdown of share ownership is not clear.

Our take

The fresh capital will help noon navigate intense competition from local and global players, allowing it to grow its marketplace, maintain competitive pricing, and counter fast-expanding smaller rivals.

Who are the main players? Amazon is its biggest competitor in the region, while China’s Meituan recently entered the Middle East with food delivery and delivery-only stores. Meanwhile, Saudi’s Ninja raised USD 250 mn to expand, and low-cost platforms Shein and AliExpress are also expanding their footprint.

Background

The company is also considering a dual listing on the Saudi and UAE stock exchanges within the next two years as it moves toward profitability, and is exploring mergers and acquisitions to expand into new markets such as India. It is also expanding its automated self-delivery services, aiming to cut its 40k delivery workforce by half by 2027.

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