Iran’s largest telecommunications operator 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 the Iranian version of Amazon, is a major 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, revolutionizing 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 groundbreaking deal, Digikala is able to address several challenges, including its plan to go public and expand to global markets.

The acquisition by MCI is likely to increase competition among major players in Iran’s technology sector, particularly between Digikala and ride-sharing apps such as Snapp and Tapsi. As the details of this extensive agreement continue to emerge, more developments are expected in the coming days.

Discussions about this investment began in January 2024, but sources say preliminary talks began more than two years ago.

The deal, reported by Digiato, values ​​Digikala at IRR 300 trillion (US$500 million), with MCI’s 40 percent stake valued at IRR 120 trillion. The transaction included a cash purchase of shares from existing investor Sarava and other minority shareholders.

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

Digikala’s announcement revealed that the founders previously held 32.36 percent of the company, suggesting that MCI also acquired some of the Mohammadi brothers’ shares.

Under the agreement, no single shareholder will have sole control of the company. The founders and management team will continue to oversee Digikala’s business operations, strategic planning and executive appointments.

Sarava, which had invested billions of rials in Digikala over the years, has now sold its stake in a major transaction with telecom giant MCI. This exit is one of Sarava’s most successful, following recent profitable divestments in other notable companies such as Alibaba, AloPeyk and Navar.