IPO First, Region Next: How Achareh Plans to Scale Beyond Iran

The co-founder of Achareh recently discussed the company's IPO journey, challenges in going public, and strategies for entering regional markets during an interview with Digiato.

Hamed Tajedin, Chairman of the Board at Sana Gostar Sabz and co-founder of Achareh, shared updates on the company's IPO process. He stated, "In the path of going public for startups in the digital economy sector, there are always obstacles and strict regulations, and we have not been an exception. Since the beginning of this year, we officially started the process of entering the stock market and selected our admission advisor. Now, we are in the process of document exchange and completing the formal procedures. During this time, the board of directors of the holding company had to decide whether to take the individual companies public or to IPO the entire holding. After evaluations, it was decided that the holding company, Sana Gostar Sabz, which owns Achareh and other companies, will go public through an IPO."

Challenges in the IPO Process

In response to whether Achareh has foreign investors and if this created challenges for the IPO process, Tajedin clarified: "Achareh does not have foreign investors, but we have had Iranian investors with other nationalities. This likely raised sensitivities and was reviewed. However, with all the challenges and follow-ups we undertook, these issues are now resolved, and we are on the path to our initial public offering."

Tajedin added that the holding company planned for an IPO from the outset, structuring the company accordingly. He emphasized their commitment to transparency, even when it created difficulties.

Transition to the Stock Exchange

When asked why the company shifted from the over-the-counter (OTC) market to the stock exchange, Tajedin explained: "If we consider the OTC market as a league, the stock exchange is a larger league and does not have some of the OTC limitations. On the other hand, it has a higher standard level and expects greater financial performance. When we initially planned for one of our companies, like Achareh, the OTC market was more suitable because the company did not meet some of the financial and stock exchange requirements and standards. After evaluating the options and deciding to take the holding company public and offer shares, we concluded that we are now ready to meet the stock exchange conditions."

He noted a shift in the stock exchange's attitude towards startups, crediting Digikala for paving the way. Tajedin believes that startups entering the stock exchange is a natural progression, given their global economic leadership.

Regional Expansion Plans

Tajedin outlined Achareh's unique geographical development model. "Given that our business is a large, investment-driven enterprise, it requires significant capital to succeed. Without this, it will remain small-scale," he said.

Focusing on neighboring markets, he elaborated: "Our geographical development model requires local investors in those regions. We aim to transfer the knowledge and technology of this business, while local investors provide the required capital for expansion. Additionally, a local team must be established there to operate under the supervision of the main team here, ensuring the business develops in that region."

He highlighted Persian Gulf countries and nations with stronger relations with Iran as key targets. "Currently, we are seriously considering the Iraqi market. Oman and Qatar are also under review. In the northern region, we are focusing more on Turkey. However, to advance these plans, all elements, including knowledge, capital, and local workforce, must come together to make this a reality," he explained.