Dubai-based YOUGotaGift has agreed to sell a majority stake to Japanese e-gifting platform giftee Inc., CEO Husain Makiya told Arabian Business in an exclusive interview.
The Tokyo-listed giftee (TYO: 4449) will acquire 91 per cent of the digital gift card marketplace from existing shareholders, including Middle East Venture Partners and HoneyBee Tech Ventures, with plans to purchase the remaining 9 per cent by late 2027. The financial terms were not disclosed.
The acquisition marks one of the first major consolidation moves in the region’s fragmented digital gift card sector, as companies seek to build global scale amid rising competition.
The company’s annual gross merchandise volume is $200 million.
“In the last 5 to 7 years, a number of companies have emerged in the digital gift card market. These companies tend to have country-specific focuses without much international exposure. Now these businesses are looking to join a bigger group, so they can scale up and acquire more market share,” Makiya said.
The deal, which is subject to regulatory approvals, is expected to close by the end of November. The existing management team will remain in place as a condition of the transaction.
YOUGotaGift, which pioneered digital gift cards in the Gulf Cooperation Council (GCC) in 2013, currently distributes more than five million cards annually and services over 2,500 corporate clients. The company’s client roster includes major regional entities such as Saudi Basic Industries Corporation, Abu Dhabi National Oil Company, Emirates Airlines, and several leading banks.
The acquisition gives giftee, which operates in Japan, Malaysia, Indonesia and Vietnam, a strategic foothold in the Middle East’s rapidly growing prepaid cards market. The sector is projected to reach $21 billion by 2028, with gift cards representing 25 per cent of the market, according to data shared by the companies.
“The value is reflective of YOUGotaGift’s market-leading position, clear growth potential and our technology stack,” Makiya said. “In just the last three years we have increased our distribution volumes by over 200 per cent.”
The Dubai-based company has built its business primarily through B2B operations, supporting reward and loyalty programmes for major corporations. However, the acquisition presents an opportunity to accelerate its B2C offerings amid growing regional demand for digital gift cards.
“Almost two-thirds of Saudi and UAE customers prefer digital gift cards,” Makiya said, adding that the regional e-commerce market is expected to reach $50 billion by 2025, according to Deloitte figures.
The deal emerged from discussions that began two years ago. For giftee, YOUGotaGift’s attraction lay in both its market position and its technology platform, which the Japanese firm plans to leverage for expansion in Southeast Asia.
“We are thrilled that our success story has resonated with giftee, creating a unique opportunity to showcase the strength of the GCC’s digital ecosystem on a global stage,” said Abdulkader Bibi (Abed), Co-founder, YOUGotaGift.
“This acquisition not only reflects the international potential of homegrown businesses like ours but also underscores the vast opportunities that lie within the region.”
Mutsumi Ota, CEO of giftee, said the companies share “medium- to long-term visions and growth strategies” and aim to build a “global e-gift platform that transcends each company’s respective regions of operation.”
The transaction represents an early consolidation move in a sector where numerous local players have emerged. “giftee is ahead of its competitors with this early acquisition of YOUGotaGift, a market leader,” Makiya said.
YOUGotaGift’s platform provides access to more than 1,000 regional and 5,000 international brands through its proprietary HappyYOU multi-brand card. The company has expanded significantly since entering Saudi Arabia in 2017, growing its client portfolio by 30 per cent since 2021.
The deal structure includes a complete exit for current venture capital investors. The remaining 9 per cent stake, set to be acquired by giftee in 2027, suggests a staged approach to full ownership while maintaining management continuity.
“The race for a true global digital Gift Cardplayer is on and giftee has certainly set its sights high on becoming the global leader with YOUGotaGift on board,” Makiya said.
The transaction marks a significant milestone in the Middle East’s digital payments sector, potentially triggering further consolidation in a sector that has seen rapid growth since the pandemic accelerated digital adoption.
YOUGotaGift was founded in 2013 in the UAE and has since expanded across the GCC. giftee Inc., established in 2010 in Japan, is listed on the Tokyo Stock Exchange and operates eGifting platforms across several Asian markets.
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