How Saudi Arabia’s Morni Plans To Acquire Egyptian Mobility Startups With New $10M Fund

Exits.me, an Egypt-based fintech investment platform, and Morni Holding, a Saudi Arabian company, have finalised a new buy-side mandate earlier this month in Dubai, United Arab Emirates, in the presence of Mohamed Abu El Naga, the CEO and co-founder of Exits.me, and Salman Al-Suhaibaney, the founder and chief commercial officer of Morni Holding.

Shehail Alshehail, Managing Director of Morni
Shehail Alshehail, Managing Director of Morni

 The Egyptian market offers an alluring investment ground for new and existing value chains with a cascade of exciting opportunities. Numerous regional and international investors have increased their investments in Egypt as a result of this lucrative market. From now until 2030, Morni intends to invest $10 million in Egypt as part of their regional expansion plans.

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Here Is What You Need To Know

  • Exits.me takes on the role of Morni’s sole advisor as a result of the new buy-side mandate, supporting them in executing their growth strategy.
  • Salman Al-Suhaibaney founded the startup Morni, which is present in Saudi Arabia and other GCC countries. The firm uses a network of +33,000 service providers to deliver the first roadside assistance technology application in the area. A group of Saudi youth worked on the application in 2014 with the Badir Technologies Incubation Program under the direction and funding of King Abdulaziz City for Science and Technology. Users can use the app to make on-the-go requests for towing, battery replacement, tyre changes, fuel delivery, and locksmith services.
  • Since its launch in 2015, Morni has received +2 million downloads and is used by +1.2 million users. As of this writing, Morni has received funding totaling $14.7 million and has continued to expand its product line to include an electronic auction platform, the first third-party administrator of motor claims granted a licence by the Saudi Central Bank in the country of Saudi Arabia, and the introduction of the first end-of-vehicle life facility in Mena. These initiatives are aimed at assisting insurers in their loss reduction initiatives and ensuring the implementation of environmentally friendly disposal of vehicles.
  • Exits.me is being used by Morni to prevent mergers and acquisitions in the region’s Vehicle Roadside Assistance & Automotive Services Market as it carries out its expansion strategy. Salman, who attributes the idea for Morni to having to wait six hours at night in Riyadh for assistance due to a flat tire, hopes to use the mandate to broaden his vision across more untapped markets in Mena.
  • Exits.me will assist Morni in its expansion strategy across various markets in the region within the sector of Road Side Assistance (RSA) & Automotive services under the recently signed mandate. Since its launch earlier this year, Exits.me has been actively engaged in a pipeline of sell and buy-side advisory mandates with a tentative size of $250 million. With a CAGR of 4.1% from 2022 to 2030, the Global Vehicle Roadside Assistance Market size & share revenue was estimated to be about $23.6 billion in 2021 and is projected to be close to $34.8 billion by 2030. In the service area of vehicle roadside assistance, the Mena region is untapped, creating a highly lucrative market for expansion.
  • With the support of Exits.me, Morni hopes to launch this new expansion strategy in Q1 2023, beginning with the Egyptian Market, as part of their attempts to digitise the many roadside assistance services into one super-app for the area. Along with Road Side Assistance, both organisations will be focusing on growing the Morni service offerings to offer exclusive clients throughout the region access to limited edition automobiles through collaborations with luxury car suppliers and insurance companies. This new line of growth is the result of Morni’s productive collaborations with dealers of high-end cars like Bentley, Ferrari, Infinity, and Lamborghini to transport their clients in Saudi Arabia.

“The opportunities within this sector are endless and highly underserviced, especially within markets that have ageing vehicles and are prone to the need for RSA. We are excited to reach strategic milestones in establishing the first deals with multiple partners presented to Morni by the Exits team over the next period. The Egyptian Market will be a worthwhile new addition as we start multiple upcoming deals, and will get us closer to our goal to cover 100 million vehicles with our products by 2030,” Shehail Alshehail, Managing Director of Morni, said. 

Both parties spoke of how excited they were about the promising M&A scene that is about to emerge in Egypt with the launch of Exits.me and reach its full potential once the company receives its FRA licence before the end of the year.

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Mohamed Abu El Naga said: 

“We highly value Morni’s trust in us as their buy-side advisor in the region. We hope to create an impactful footprint for them by helping them implement their expansion strategy in the upcoming years, starting with Egypt. We are also proud that this aligns with our mission at Exits.me in helping startups and SMEs with their investment deals and creating a harmonious post-deal environment for all parties involved. Our ultimate goal is to create an inflow of foreign investments in the country and unlock the potential of joint Egypt-Saudi efforts in building sustainable ventures that solve real problems”.

“The investment scene in the region is going through turbulent times. Increasingly startups and SMEs are finding it more challenging to matchmake with potential investors, and startups don’t have the expertise to close the deal to the end. Exits.me has created a line of services that helps fill this gap for any investor looking to expand through M&A or other investment banking-related services. We highly believe in the untapped potential in the Egyptian Market within the sector of Vehicle Roadside Assistance & Automotive Services. We look forward to creating more opportunities for existing businesses and jobs under our Super-App,” Salman added.

The MENA region’s next super-app for automotive and roadside assistance services is already well on its way to customers.

Morni Egypt Morni Egypt Morni Egypt

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh