Digikala Explained

Type:Private
Industry:E-commerce
Area Served:Iran
Hq Location City:Tehran
Hq Location Country:Iran
Num Employees:8,200 (2021)
Website:digikala.com
Founders:Hamid and Saeed Mohammadi

The DigiKala Group (fa|دیجی‌کالا|translit=Dijikalâ|lit=digi(tal) goods) is an Iranian e-commerce company based in Tehran, founded in July 2006 by Hamid Mohammadi and Saeid Mohammadi.[1] [2] [3]

The e-commerce platform digikala.com offers a wide range of consumer products, which includes sports and entertainment goods, electronics, groceries, personal products, and digital products with a return option [4] and express delivery service. The group also has subsidiaries involved in other areas of ecommerce.

History and growth

DigiKala was founded in 2006 by the brothers Hamid and Saeid Mohammadi, prompted by an unpleasant experience they had trying to buy a digital camera. The pair used $10,000 of their own savings to start the company.[5] The company's valuation was $150 million in 2014 and $500 million in late 2015.[6] [7] As of 2021, more than 4 million products have been offered for sale by nearly 160,000 sellers.[8] In 2021, the platform had 30 million visitors per month[9] and 17.2 million visits per day.[10] In May 2022 it was ranked as Iran's 2nd most visited website.[11]

DigiKala has benefited from the Iran's increasing digitization. By 2017, 62% of Iran's households were connected to the Internet and this development has driven demand for Internet services that mirror Western digital platforms.[12] The company does not publicize its revenue, but has said sales are growing at a rate of 200% a year, and that it is receiving orders from even the most remote villages in Iran.[13]

Iran's economic volatility forced DigiKala to lay off 175 workers in 2018.[14] To survive, the platform adopted several initiatives such as a pay-per-sale strategy which allow users to receive a commission if a directed customer purchases a product.[15] In March 2019, DigiKala also addressed the issue of author authenticity of products in the platform after receiving complaints over the quality of goods being sold. In a statement, the company claimed that only 0.2% of the 2 million products sold were unoriginal and that the company has taken steps to implement stringent quality control.[16]

Investment

DigiKala started with Hamid and Saeed Mohammadi's initial personal investment.

Office building hijab shutdown

Vanak Plaza 31, In 23 July 2023 its office was shut down by law enforcement command for lack of hijab by its businesswomen.[17]

Shareholders

The ownership structure of Digikala e-commerce group was publicly the CEO of Digikala. Accordingly, 33.12% of the company's shares belong to Hamid and Saeed Mohammadi, the co-founders of Digikala, followed by IIIC European Investment Fund with 32.67%, Sarava Pars Company with 25.64%, incentive shares for managers and key employees with 4.46%, and other shareholder companies with 11.4%, including Lilian Mod Tejarat, Bazar Ati Ara, Pomegranate Investment AB, Kia Asa Tejarat Toos, and Pars Gostar Dina. [18] [19]

Number of employees

In 2021, Digikala planned to increase its number of associates to 10,000. [20] As of 2022, Digikala employs more than 8,000 people.[21] [22]

Products and services

Digikala initially started as an online retail platform focused on digital and electronic products.[23] Since 2014, Digikala expanded its strategy to become an online marketplace, offering a wider range of products.[24]

Subsidiaries

The DigiKala Group is active in logistics, e-commerce, content, fintech, martech, and innovative fields.[25] Digikala owns more than 10 subsidiaries, including Fidibo, Digistyle, Digipay, Pindo and Komoda.[26] [27]

Fidibo

Fidibo is a Persian e-book store that has been operating since March 2014. Digikala bought an interest in the company in 2016 and became its main owner in 2017.[28]

Digistyle

Digistyle, an online fashion and clothing store, was founded in 2016.

Digipay

Digipay was founded in 2018, focusing on mobile and web payments. Digipay services include Smart IPG, merchant management dashboard, mobile payment gateways, customer refund services, personal and organizational wallets, mobile payment applications, and installment purchase facilities.

Komoda

Komoda is a social buy-and-sell startup platform. It was founded in July 2018 and has been a Digikala group member since late 2019.[29]

Pindo

In 2021, DigiKala launched Pindo, a platform for registering Consumer to Consumer advertisements.[30]

Smartech

Smartech offers marketing technology services and was added to the Digikala group in 2019.[31]

DigiExpress

DigiExpress provides online Logistics Services and was founded in 2019.

Digikala Jet

Launched in 2021, DigiKala Jet is a personalized online grocery shop in major cities like Tehran, Karaj, Mashhad, and Shiraz.[32] [33]

Lawsuit

In 2024, the attorney general of Iran threatened legal action for selling coffee mugs and shoes decorated with the name of Fatima, daughter of Muhammad and wife of the first Shiite imam Ali.[34]

See also

Notes and References

  1. News: Fung . Brian . 14 July 2015 . The Washington Post:What the Iran deal means for the country's surprisingly strong tech industry . . live . https://web.archive.org/web/20201205123135/https://www.washingtonpost.com/news/the-switch/wp/2015/07/14/what-the-iran-deal-means-for-the-countrys-surprisingly-strong-tech-industry/ . 5 December 2020.
  2. News: Digikala is the Largest Online Marketplace in Iran and the Middle East. 3 September 2021 . finance.yahoo.com . https://web.archive.org/web/20210903140144if_/https://au.finance.yahoo.com/news/digikala-largest-online-marketplace-iran-150000109.html . 3 September 2021 . dead.
  3. Web site: 9 February 2016 . Iranian Startups Come of Age . 18 September 2022 . Iran Wire . en.
  4. Web site: 9 February 2022 . Total guide on DigiKala's return services .
  5. Web site: Guttman . Amy . Meet The Twin Brothers Transforming How Iranians Shop . Forbes . https://web.archive.org/web/20220918054425/https://www.forbes.com/sites/amyguttman/2015/01/26/twin-brothers-transforming-how-iranians-shop/?sh=42eb215c57aa . 18 September 2022 . en . 26 January 2015 . live.
  6. News: McFarland . Matt . 10 November 2014 . Here's what it's like to launch a start-up in Iran . live . https://web.archive.org/web/20220520175652/https://www.washingtonpost.com/news/innovations/wp/2014/11/10/heres-what-its-like-to-launch-a-start-up-in-iran/ . 20 May 2022 . The Washington Post.
  7. Web site: Sharif . Hossein . 12 October 2015 . Iran's digital start-ups signal changing times . live . https://web.archive.org/web/20220423232648/https://www.bbc.com/news/world-middle-east-34458898 . 23 April 2022 . BBC.
  8. News: وضعیت دیجی کالا در پیک چهارم کرونا چگونه است؟ . Persian.
  9. News: 23 August 2021 . Iran E-Commerce Trending Higher . financialtribune . 1 October 2021.
  10. News: 22 August 2021 . Iran E-Commerce Trending Higher . eghtesadonline . 1 October 2021.
  11. Web site: Alexa: Top Sites in Iran . dead . https://web.archive.org/web/20220501153829/https://www.alexa.com/topsites/countries/IR . 1 May 2022 . Alexa.
  12. Web site: Iranian Startups Offer Opportunities In An Unstable Economy. RFE/RL. 15 January 2019 . en. 9 May 2019.
  13. News: FT:Iranian e-commerce thrives despite obstacles . Financial Times . October 2014 . subscription.
  14. Web site: 7 September 2018 . In Face of Hard Times Iran's Digikala Remains Upbeat . subscription . 9 May 2019 . Financial Tribune . En.
  15. Web site: 21 September 2018 . Digikala Enlists Pay-Per-Sale Strategy . subscription . 9 May 2019 . Financial Tribune . En.
  16. Web site: Digikala to Carry Out Stringent Quality Control. 12 March 2019. Financial Tribune. En. 9 May 2019.
  17. Web site: حجاب اجباری؛ ساختمان اداری دیجی‌کالا به‌خاطر «حجاب کارمندان زن» پلمب شد . 23 July 2023 .
  18. Web site: Hoe investeerders uit Nederland en België verstrikt raakten in dictatoriaal Iran . 2023-03-01 . FD.nl . nl.
  19. Web site: دیجی‌کالا با انتشار ساختار سهام‌داری خود اعلام کرد: سهام‌دار حاکمیتی نداریم . 2023-03-01 . دیجیاتو . fa-IR.
  20. Web site: معاون منابع انسانی دیجی‌کالا: امسال یک خانواده ۱۰ هزار نفری می‌شویم • اتاق خبر دیجی‌کالا . 2022-11-27 . دیجی‌کالا مگ . 3 June 2021 . fa-IR.
  21. Web site: گزارش سرمایه‌های انسانی دیجی‌کالا: افزایش 39 برابری نیروی انسانی طی 8 سال .
  22. Web site: دیجی‌کالا در پیک چهارم کرونا . 18 April 2021 .
  23. Web site: hamsite . همکاری آژانس دیجیتال مارکتینگ هم سایت . آژانس دیجیتال مارکتینگ هم سایت.
  24. Web site: دیجی‌کالا تا یک سال دیگر «یونیکورن» می‌شود - ictstartups.ir . https://web.archive.org/web/20190116095932/http://www.ictstartups.ir//fa/content/57604 . 16 January 2019 .
  25. Web site: گزارش سال ۱۳۹۹ دیجی‌کالا . digikala.com . Digikala . 3 September 2021.
  26. Web site: Pomegranate Investment AB (publ) Releases Financial Report for the period of 6 months ended October 31, 2020. . news.cision.com . 18 December 2020 . Pomegranate Investment AB . 3 September 2021.
  27. Web site: فروشگاهی که هلدینگ شد؛ نگاهی به ساختار و عملکرد گروه دیجی کالا . zoomit . 17 July 2021 . 1 October 2021.
  28. Web site: واگذاری یکی از اپلیکیشن‌های کتابخوان به یک فروشگاه اینترنتی . Mehrnews Agancy . 13 February 2017 . 3 September 2021.
  29. News: دیجی کالا در استارتاپ کمدا سرمایه‌گذاری کرد . 3 September 2021 . zoomit . ZoomIT . 2 May 2020.
  30. News: 4 April 2021 . دیجی کالا اپلیکیشن پیندو را رسما برای دانلود در دسترس عموم کاربران قرار داد . Persian . Digiato . 3 September 2021.
  31. Web site: About Smartech . Smartech . 1 October 2021.
  32. News: محصول جدید گروه دیجی‌کالا آغاز به کار کرد / دیجی‌کالا جت؛ ارسال رایگان و سریع سفارش‌های سوپر مارکتی . 22 October 2021 . راه پرداخت . 5 August 2021 . fa-IR.
  33. News: دیجی‌کالا جت برای ارسال سریع‌تر سفارش‌ها با شرکت‌های لجستیکی همکاری می‌کند . 22 October 2021 . زومیت . 10 October 2021 . fa.
  34. Web site: دادستانی تهران علیه شرکت دیجی‌کالا به اتهام توهین به مقدسات اعلام جرم کرد .

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