Summary:
Cafu is seeking to raise funds through its first-ever stake sale.
Founded in 2018, Cafu has become a leader in fuel delivery in Dubai.
The startup is expanding its services to include mobile car washes and battery replacements.
Cafu is now charging a fee for fuel deliveries, marking a shift in its business model.
The company is owned by the Al Ghurair family but financial details are limited.
Cafu: The Fuel Delivery Innovator in Dubai
Cafu, a pioneering fuel delivery service based in Dubai, is venturing into uncharted territory as it seeks to raise funds through its first-ever stake sale. Founded in 2018 by a member of a prominent Emirati merchant family, Cafu has made a name for itself with its blue-green trucks that deliver fuel directly to customers at competitive prices, matching those at traditional petrol stations.
Exploring New Avenues
Currently, Cafu is collaborating with Lazard Ltd. to facilitate this stake sale, although discussions are still in their early stages with no definitive outcomes yet. Both Cafu and Lazard have opted not to provide comments on the matter.
Expanding Its Offerings
Apart from fuel delivery, Cafu has diversified its services to include mobile car washes, battery replacements, and electric vehicle recharging. The company also caters to the marine sector by offering fuel delivery for boats at select marinas in Dubai. Notably, Cafu has extended its operations beyond the UAE, reaching markets in Canada.
Business Model Evolution
In a significant shift, Cafu recently announced a new fee structure for its fuel deliveries, which it describes as a necessary adjustment to maintain service quality.
Ownership and Financial Insights
The company is owned by the family of founder Rashid Al Ghurair, but details regarding its financial status remain scarce. Al Ghurair is also known for a conglomerate that spans various sectors, including food, resources, and construction.
Challenges Ahead
A Cafu executive previously indicated that financing remains a significant challenge, especially given the company's cautious approach to equity fundraising. For Lazard, securing this mandate would represent a strategic move into the Middle Eastern market, which has seen competition from established firms like Rothschild & Co. and Moelis & Co..
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