The music-streaming platform Anghami will become the first Arab technology company to list on the NASDAQ New York, the company announced on Wednesday.
With a $220 million valuation, the listing is happening through a merger with Vistas Media Acquisition Company Inc and will close in Q2 of 2021.
Anghami is a music app and platform that offers listeners in the MENA region unlimited Arabic and international music to stream and download.
The company expects to almost double its paying subscriber base by the end of 2021, one of its co-founders said.
“We are expecting to hit around 2.5 million subscribers, from our current 1.4 million,” Eddy Maroun, who is the firm's CEO told Al Arabiya English. “The MENA is still our focus as music-streaming becomes more mainstream,” Eddy Maroun added.
In a fiercely competitive industry, Maroun revealed that pricing plays a key role to achieve success.
When Spotify entered the region, the streaming service localized its offering to its user base, pushing its free tier service, the company’s other co-founder and Chairman, Elie Habib said.
“Our business grew 43 percent.”
Founded in 2012, Anghami is the first music-streaming platform in the Middle East and North Africa (MENA) and has built a platform offering more than 57 million songs to more than 70 million registered users, with around 1 billion streams per month.
With an Arabic speaking population of over 400 million globally, a listing on NASDAQ allows the platform to scale its user base and invest in technology to build its business.
Anghami has grown revenues 80 percent over the last three years and plans to increase five-fold over the next three years, according to a press statement. The company could have about $142 million of cash on its balance sheet at closing to expand.
According to the company, Anghami uses IT learning algorithms to process over 56 million data points from its user base every day. Over nine years of user data enables it to predict user behavior and trends to focus its investments in areas delivering the highest return on investment.