Gifty Co., Ltd.
Gifty makes YOUGotaGift.com Ltd., an e-gift platform business in the United Arab Emirates and Saudi Arabia, a subsidiary
~ Developing e-gift market in MENA following ASEAN as part of growth strategy ~ ……
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Gifty Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo/Representative Directors: Mutsumi Ota, Tatsuya Suzuki/hereinafter referred to as Gifty), which operates an e-gift platform business (*1), operates an e-gift platform business in the United Arab Emirates and Saudi Arabia. Shares will be transferred to YOUGotaGift.com Ltd. (Headquarters: British Virgin Islands / CEO: Husain Makiya / hereinafter referred to as YGG) on August 30, 2024 (Friday). We would like to inform you that we have concluded a contract. Under this agreement, 91% of the outstanding shares of YGG will be acquired for approximately 4.1 billion yen by October to November 2024 (scheduled), and the remaining outstanding shares will be additionally acquired in 2028. Furthermore, we will make YGG a wholly owned subsidiary. By making YGG a
subsidiary, Gifty will expand into MENA following ASEAN and accelerate the development of the e-gift market overseas.
Gifty’s growth strategies include “expansion of the e-gift platform” and “horizontal geographical expansion,” and we are working on flexible M&A to strengthen and accelerate the realization of this growth strategy. In addition, in order to carry out “horizontal geographical expansion,” we established Gifty Malaysia, a local subsidiary in Malaysia, in October 2018, Gifty Mekong in Vietnam in July 2021, and three overseas bases in June 2022. We have established Gifty Indonesia in Indonesia and are promoting the development of e-gift business in ASEAN.
YGG, which has recently become a subsidiary, is developing an e-gift platform business that handles everything from issuance to
distribution of e-gifts, similar to Gifty, in the Middle East region including the United Arab Emirates and Saudi Arabia. The population of the Middle East and North Africa region (hereinafter referred to as MENA (*2)) is expected to reach 819.29 million people (*3) in 2054, and the GDP growth rate will remain at approximately 5% annually. The area is expected to have a high population growth rate and stable economic growth (*4). In the Middle East region of MENA, the gift card market, which is a combination of e-gifts and physical gift cards, is also growing steadily, and the market size in 2023 is approximately 16.6 billion USD, and it will continue to grow at a CAGR of 20%. This is a very attractive market with great prospects for growth (*5). YGG distributes e-gifts mainly to individuals (toC) and corporations (BtoC, BtoE), and has over 1,000 types of e-gifts that can be distributed, mainly retail and internet content. We also develop and provide bundled e-gifts as our own products. YGG’s e-gift distribution amount as of 2023 is 160 million USD (approximately 23.7 billion yen), and sales are 10 million USD (approximately 1.47 billion yen) (*6), realizing both profit generation and growth. As a leading company, we are driving the e-gift market in the Middle East.
Gifty believes that MENA is a region that will continue to develop due to its high population growth rate and stable economic growth, and that the Middle East gift market is expected to continue to grow rapidly. We have decided to make YGG a subsidiary because we believe that it will be a meaningful investment that is consistent with our growth strategy as it will significantly expand our foundation. Based on a strong partnership, Gifty and YGG will further develop the e-gift market in MENA and aim to further popularize e-gifts, while also spreading the culture of giving e-gifts as a means of
communication that circulates feelings in the global market. Both companies will work together to ensure that this policy becomes widespread.
(*1) The e-gift platform business is a business that provides an integrated service from the generation to distribution of e-gifts that Gifty is working on.
(*2) MENA is an abbreviation for Middle East & North Africa, and refers to the countries in the Middle East and North Africa. (*3) Source: JETRO Business Bulletin “Population of the Middle East and North Africa: 581.48 million in 2024, 819.29 million in 2054, UN forecast”
(*4) Source: INTERNATIONL MONETARY FUND
(*5) Source: Middle East Gift Card and Incentive Card Market Size & Share Analysis – Growth Trends & Forecasts (2023 – 2028)
(*6) Source: Calculated using the US dollar TTM rate of 147.34 yen as of August 13, 2024.
Message from YOUGotaGift.com Ltd. CEO Husain Makiya
Since its establishment, YGG has aimed to become the Middle East’s first global digital gift card platform. Today, YGG is firmly established as a market leader with the largest network of brand partners and corporate customers. Our passion for digital prepaid has earned us a reputation for being effective, reliable and innovative. With this acquisition, YGG will continue to develop this field, further solidify its position as a market leader, and expand its efforts in important markets in the Middle East. YGG is pleased to partner with Gifty as a very strong strategic partner with a similar growth story and a shared desire to create a more connected society through e-gifting.
■ Message from Mutsumi Ota, Representative Director of Gifty Co., Ltd. We are very pleased to welcome YGG, a leading e-gift company in the MENA region, to our group. YGG has a rich gift lineup and provides the region’s largest platform for distributing e-gifts to individuals and corporations. In particular, services for corporations are growing rapidly, and while we are building a strong trading base by providing loyalty programs to major banks, telecommunications, and airlines, we are rapidly expanding our business with a new application of employee benefits. I am. Since the businesses of both companies have many things in common, we were able to share many things in a short amount of time, including medium- to long-term visions and growth strategies. In the future, we would like to work with YGG to become a global e-gift platformer that goes beyond the regions in which we operate. ■ Timely disclosure regarding this matter
1. August 14, 2024
“Notice regarding stock acquisition (making it a subsidiary) of YOUGotaGift.comLtd. and borrowing of funds”
https://contents.xj-storage.jp/xcontents/AS04721/78392525/91af/425e/a8a3/865d82913d59/140120240814572305.pdf 2. August 14, 2024
“Supplementary explanatory materials regarding acquisition of shares (making it a subsidiary) of YOUGotaGift.com Ltd. and borrowing of funds”
https://contents.xj-storage.jp/xcontents/AS04721/309c55de/4ee2/4c7d/ab2d/9d1e5427f190/140120240814572258.pdf 3. September 2, 2024
“[Progress of disclosure matters] Notice of conclusion of stock transfer agreement regarding acquisition of shares of YOUGotaGift.com Ltd. (making it a subsidiary)”
https://contents.xj-storage.jp/xcontents/AS04721/2e2bdfbb/2fc4/405e/8796/cd068c1888c3/140120240902579274.pdf ■ About YOUGotaGift.com Ltd.
Company name: YOUGotaGift.com Ltd.
Address: Trident Chambers, PO Box 146, Road Town, Tortola, British Virgin Islands
Established: February 5, 2013
Representative: CEO Husain Makiya
URL: https://yougotagift.com/business/about-us/
Business content: e-gift platform business
■ About Gifty Co., Ltd.
Company name: Gifty Co., Ltd.
Address: 12th floor, Higashigotanda Square, 2-10-2 Higashigotanda, Shinagawa-ku, Tokyo 141-0022
Established: August 10, 2010 (Service started: March 2011)
Capital: 3,230 million yen (as of the end of June 2024)
Representative: Representative Director Mutsumi Ota, Tatsuya Suzuki Business details: Development of e-gift platform business (four services below https://www.google.com/)
1. Operation of casual gift service “giftee(R)”
2. Development of “eGift System” service, a gift sales system for corporations 3. Development of “giftee for Business” service, a corporate solution using e-gifts
4. Development of “e-Machi Platform (R)” digital platform service that solves local government and regional issues
URL:
Giftee Co., Ltd. https://giftee.co.jp
giftee(R) https://giftee.com
giftee for Business https://giftee.biz/
eMachi Platform(R) https://giftee.co.jp/service/emachi-platform