Anghami Scores $5 Million Strategic Investment from Riyadh-Based Media Company SRMG

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Anghami has secured a $5 million investment from Saudi media company SRMG. Photo Credit: Anghami

Against the backdrop of rapid music industry growth in the Middle East – and a more than 62 percent year-over-year stock price slip for Anghami (NASDAQ: ANGH) – SRMG Ventures has announced a $5 million investment in the MENA streaming platform.

Riyadh-based Saudi Research and Media Group (SRMG) revealed the multimillion-dollar transaction, the result of its third overall investment, via a formal release that was emailed to Digital Music News. Plus, SEC filings from the publicly traded streaming service shed additional light upon the transaction.

Executed via SRMG’s aforesaid venture capital arm, the investment refers specifically to a $5 million senior unsecured convertible note, the relevant regulatory filings show. Accruing “interest at a simple rate of 11.0% per annum” and due to be repaid “in full three years” from now unless redeemed or converted in the interim, the note further affords the media company the chance to purchase another $5 million stake within the next 12 months.

Also in terms of the investment’s details, the note can be converted into a cool two million shares (priced at $2.50 apiece) and has been accompanied by a “director designation agreement” that, as its name suggests, compels Anghami “to take all necessary action to cause a member designated by SRMG to remain on, or otherwise be appointed to, the board of directors.”

Bigger picture, the involved businesses took the opportunity to tout the ongoing expansion of MENA’s entertainment sphere as well as the continued buildout of 11-year-old Anghami. On the former front, Forbes Middle East just recently ran a carefully timed piece that, citing IFPI data, emphasized music’s quick-developing revenue reach throughout the region. (The article likewise reiterated that SRMG and Billboard had in June launched Billboard Arabia.)

Regarding the offerings of Anghami, the service (which is said to boast approximately 120 million registered users and a “substantial subscriber base”) now operates a jointly owned record label, a live event division, and more.

Notwithstanding these positives and reported revenue growth, Anghami, besides suffering the initially noted stock-price falloff, made seemingly significant layoffs last year. Also during 2022, reports suggested that Spotify was exploring a buyout of Anghami. But almost 12 months later, the rumored deal hasn’t come to fruition, and the larger of the streaming platforms is working to cut costs and maximize efficiency.

Back to the Anghami investment, SRMG CEO Jomana R. Al-Rashid in a statement touched upon a broader objective of “elevating the region’s media and entertainment industry.”

“Today, Anghami has been able to secure one of the largest user bases in audio streaming in the region,” the SRMG head communicated in part, “and has developed an impressive platform with extensive technological capabilities – a testament to the leadership of founders Elie Habib and Eddy Maroun. We’re looking forward to working closely with the Anghami team to realize our shared vision of elevating the region’s media and entertainment industry.”

Building upon the points in remarks of his own, Anghami co-founder and CEO Eddy Maroun indicated in part: “Working together with SRMG, a leader and innovator in regional media, Anghami will be able to unlock further opportunities to champion the music ecosystem. This partnership will propel regional artists to greater heights, expand their global reach, and create new touchpoints for our users and artists alike.”

When the market closed today, Anghami stock (NASDAQ: ANGH) was worth $1.14 per share, for a small decrease from Friday afternoon as well as a nearly 31 percent decline since 2023’s beginning.