Tenami Capital, a newly established revenue-based investment platform, announced the closing of its inaugural $3m investment in YOUGotAGift, the Middle East’s leading digital gift card marketplace.
Tenami Capital was established by a team of experienced Gulf-based investment professionals on the basis of a pioneering vision: to provide regional entrepreneurs with non-dilutive, revenue-linked growth capital and to solve the problem of exits in the venture capital industry. Tenami Capital’s anchor investors include the firm’s managing partners, Gulf-based family offices, entrepreneurs from the VC ecosystem and regional high-net-worth individuals.
The milestone investment in YOUGotAGift is an example of Tenami Capital’s vision in action. The transaction is structured to meet the company’s unique requirements and will be used to fund YOUGotAGift’s expansion in the Kingdom of Saudi Arabia and the wider Middle East. Furthermore, Tenami Capital’s revenue-based investment provides investors with a structured exit and ensures that returns are not linked to volatile valuations or interest rates but underlying revenue growth.
Zohaib Patel, Managing Partner, Tenami Capital, said “We are delighted to announce our investment partnership with YOUGotAGift, a regional champion that ticked all the right boxes: sizeable and growing revenues, strong unit economics, a fully-funded business plan and a track record of efficient capital use. We are excited to introduce our equitable revenue-based investment structure to the Middle East and look forward to supporting more high-quality entrepreneurs and businesses in our region.”
Husain Makiya, Co-Founder and CEO of YOUGotaGift, added “The Middle East is home to one of the youngest, fastest-growing and digital-savvy populations in the world. Technology-enabled firms such as YOUGotAGift are at the forefront of the region’s transformation and we require innovative investors such as Tenami Capital to help fuel our growth. With a partnership-centric approach, the Tenami Capital team was flexible and supportive to structure a growth facility fitting our business needs. While the revenue-based investment structure is a new and novel concept, I am confident this investment will play a pivotal role in helping YouGotAGift meet our long-term business objectives.”