Anghami lab in Boulevard Riyad, Saudi Arabia. (Courtesy of: Anghami)
BEIRUT — The venture capital arm of the Saudi Research and Media Group, SRMG Ventures, this week announced a $5 million strategic investment in Anghami, the Lebanese-founded music streaming platform and digital distribution company that has grown to be Spotify’s main rival in the Middle East and North Africa (MENA) region. However, Elie Habib, one of Anghami's co-founders, told L’Orient Today on Wednesday that the importance of this deveopment lies not in the sum invested, which he described as "insignificant," but in the fact that it comes from a leading media group in Saudi Arabia.
“SRMG generates money almost solely from advertising and generating revenue from advertising, which is of great significance to Anghami,” Habib explained.
“In the past, Saudi Arabia had shown little interest in the music industry, and it would have been harder for Anghami to penetrate, but things are different now,” Habib said.
In a statement issued Monday, SRMG Ventures said that the company will “bolster Anghami's growth trajectory” through its media reach, content library and portfolio of assets in audio and podcasts, enabling it to capture a larger share of the fast-growing audio streaming market in the MENA region.
Launched in Beirut in 2012, Anghami currently has 120 million registered users, up from 75 million in 2021. The company, which is headquartered in Abu Dhabi, has a catalog of more than 100 million songs, including Arabic and international music, podcasts and entertainment.
In February 2022, Anghami became the first Arab company to be listed on the NASDAQ Stock Exchange, the US multinational financial services corporation that owns and operates three stock exchanges in in New York. The company that year recorded robust financial performance, with a total revenue of $48.1 million.
The company’s cofounders, entrepreneurs Eddy Maroun and Elie Habib, relocated Anghami's headquarters from Beirut to Abu Dhabi, UAE, in 2021 as the political and economic crises in Lebanon compounded, making operating conditions challenging.
The statement said Anghami’s data and distribution capabilities present “compelling collaboration opportunities.” Namely, Billboard Arabia, launched by Billboard and SRMG in June, plans to introduce several music charts using data from the digital streaming platforms — including Anghami — to highlight the artists and songs driving the global and regional music industry.
In addition, audio content creation outlets Thmanyah, Independent Arabia and Hia, other SRMG audio content creator outlets, are already present within Anghami, regional media outlets reported.
According to SRMG Ventures' statement, Maroun described the investment as a significant milestone for his company.
“We have continually evolved to meet our audience’s changing demands and support the region’s rising entertainment and music industry. Working together with SRMG, a leader and innovator in regional media, Anghami will be able to unlock further opportunities to champion the music ecosystem," Maroun is quoted as saying, adding, "This partnership will propel regional artists to greater heights, expand their global reach, and create new touchpoints for our users and artists alike.”