Iran's largest telecommunications provider, MCI (Mobile Communications of Iran), has acquired a 40% stake in the country's leading e-commerce platform, Digikala, through its venture capital arm, "Harakat Aval".

Digikala, often referred to as Iran's version of Amazon, is a prominent Iranian e-commerce company that operates as an online marketplace, offering a wide range of products, including electronics, home goods, fashion, and beauty products. Founded in 2006. the platform allows consumers to shop online and have products delivered to their doorsteps, revolutionising the online business sector. 

The involvement of banks and telecom operators in large-scale technology transactions has become a common trend in Iran. With this landmark deal, Digikala is positioned to address several challenges, including its plan to list on the stock exchange and expand into global markets.

The acquisition by MCI is expected to intensify competition among major players in the Iranian tech sector, notably between Digikala and ride-hailing apps such as Snapp and Tapsi. As the details of this substantial agreement continue to emerge, further developments are anticipated in the coming days.

Discussions regarding this stake began in January 2024, but sources reveal that preliminary talks commenced over two years ago.

The deal, reported by Digiato, values Digikala at IRR 300 trillion ($500mn), with MCI's 40% share amounting to IRR 120 trillion. The transaction involved a cash purchase of shares from existing investor Sarava and other minority shareholders.

Following extensive negotiations with various investors, Digikala has reached an agreement with Harakat Aval. Despite the substantial acquisition, the founders, Hamid and Saeed Mohammadi, will retain a 22% stake and hold two out of five seats on Digikala's board.

Digikala's announcement indicated that the founders previously held 32.36% of the company, suggesting that MCI has also acquired a portion of the Mohammadi brothers' shares.

As part of the agreement, no single shareholder will have exclusive control over the company. The founders and the management team will continue to oversee the executive management, strategic planning, and senior appointments within Digikala.

Sarava, which had invested billions of rials into Digikala over the years, has now sold its shares as part of a significant transaction involving the telecom giant MCI. This exit is one of Sarava's most successful, following recent profitable divestments from other notable ventures including Alibaba, AloPeyk, and Navar.