Qi Group’s Digital Zone acquisition marks new chapter for Iraq’s growing digital economy

The deal, while quiet on the global stage, represents a seismic shift for Iraq’s emerging digital economy and signals a new phase of local innovation, entrepreneurship, and investment.

Founded in Baghdad in 2020 by a group of young Iraqi entrepreneurs led by Saif Al-Mufti, Digital Zone began as a modest operation offering mobile top-ups, streaming subscriptions, gaming credits, and online gift cards — services that were previously difficult to access for many Iraqis. With limited access to global platforms and a fragmented payment infrastructure, the startup filled a crucial gap in the market.

By addressing that gap with speed and precision — particularly during the COVID-19 pandemic when demand for digital services surged — Digital Zone quickly became a staple for a new generation of connected consumers across the country. Within just a few years, the platform amassed over one million monthly active users.

Now integrated into Qi’s expansive SuperQi app, Digital Zone has seen its revenue increase fiftyfold. The acquisition has significantly accelerated both reach and impact, positioning the startup as a central player in Iraq’s consumer tech landscape.

“We saw a unique opportunity to support a product that was already embedded in the lives of millions of Iraqis,” said Luay Al-Obaidi, Chief Product Officer at Qi Group. “This acquisition is about more than growth — it reflects our joint vision for digital inclusion in Iraq.”

Preserving startup agility while scaling up

Unlike many corporate acquisitions that often result in full integration or rebranding, Qi Group chose to retain Digital Zone’s existing leadership, team structure, and brand identity. This decision was deliberate, with both parties prioritising the preservation of the startup’s agility and community-driven ethos.

Digital Zone’s team, operating with minimal funding and no large-scale investment, had built its success on an intimate understanding of local needs. Qi’s goal was not to absorb the company, but to supercharge its momentum — without compromising the authenticity that resonated with users.

Post-acquisition, Digital Zone has benefited from access to Qi’s infrastructure, which includes over 11 million users and deep-rooted fintech partnerships with players like Asiacell and Earthlink. It has also expanded its offerings to include new verticals such as Ticket Zone, a local event ticketing platform, and Rahal eSIM, a digital travel service enabling Iraqis to stay connected while abroad.

A milestone in a challenging market

The deal stands as a rare milestone in a country where tech investment and startup exits have historically been limited. Years of conflict, economic sanctions, and underdeveloped infrastructure left Iraq trailing behind its regional neighbours in terms of digital innovation.

In that context, the Qi–Digital Zone acquisition sends a strong message to founders and investors alike: that tech ventures in Iraq can scale, deliver value, and achieve meaningful exits.

“Digital Zone’s success illustrates what’s possible when local innovation meets strategic support,” said Al-Obaidi. “We’re not just growing a business, we’re shaping a digital culture.”

Analysts say the deal offers early proof that Iraq’s digital economy is entering a new phase — one marked by local talent, private sector backing, and rising consumer demand for end-to-end digital experiences.

Qi’s transformation from fintech to lifestyle tech

The acquisition also reflects Qi Group’s broader pivot beyond core financial services toward what the company describes as a “lifestyle tech ecosystem.” That vision includes travel, health, e-commerce, logistics, and entertainment — all accessed through a unified platform.

Rather than operating Digital Zone as a standalone feature, Qi has integrated it strategically into its consumer-facing ecosystem. This synergy underscores a growing maturity in Iraq’s digital services market, where users increasingly expect seamless, cross-vertical solutions.

As the SuperQi app evolves, the long-term ambition is to create a comprehensive digital portal — enabling Iraqis to pay bills, buy products, book tickets, manage travel, and access entertainment, all in one place.

A quiet revolution gaining speed

Perhaps most significantly, the acquisition sends a signal to the broader startup and investor community that Iraq’s tech scene, though nascent, is both real and investable. In a region where attention often focuses on Gulf tech hubs like Riyadh or Dubai, Iraq has long been overlooked. But Digital Zone’s journey offers a compelling counter-narrative — one where homegrown solutions meet real market needs and can generate both social and financial returns.

For Iraq’s youth, it’s also a story of possibility. Built entirely by Iraqi talent without external funding, Digital Zone’s rise proves that Silicon Valley credentials are not a prerequisite for startup success.

As Iraq works to rebuild and diversify its economy, deals like this may play a pivotal role in shaping the country’s post-oil, post-conflict narrative. The partnership between Qi Group and Digital Zone may be just the beginning of a new chapter in Iraq’s digital story.