Saudi Arabia’s commercial court has opened a new phase in the trajectory of nana, a grocery delivery app, after approving financial reorganization proceedings for its parent company.
According to the government-run “Eisar” insolvency platform, a trustee said the Commercial Court in Riyadh issued a ruling to initiate financial reorganization for Central Markets for Information Technology, the owner and operator of nana. Creditors have been invited to submit claims within 90 days of the announcement.
Founded in 2016 by an entrepreneur and two partners, nana was among the first local grocery delivery apps in Saudi Arabia. From the outset, the company bet not only on entering the delivery market but on a broader shift: that traditional neighborhood grocery stores would decline as consumers increasingly turned to fast digital ordering for everyday needs.
This vision led nana to adopt a “quick commerce” model aimed at minimizing delivery times by establishing small neighborhood fulfilment stores rather than relying entirely on traditional retailers.
The company initially operated through couriers purchasing orders from partner stores, before expanding to run its own outlets. At its peak, nana operated 36 branches, later reduced to 16 as part of operational restructuring and service cuts in some locations.
Geographically, the company expanded to 18 cities across Saudi Arabia and into Cairo, reflecting ambitions for regional growth.
Heavy funding, fast expansion
nana raised about SAR780 million ($211.9 million) across six funding rounds, according to company and investor data. It began with a $2.1 million seed round in 2016, followed by a $2.2 million convertible debt round in 2017. A $6.6 million round came in 2019, then $18 million in 2020 led by STV, a Saudi venture capital fund focused on AI-driven startups.
In 2022, nana secured $50 million, followed by its largest round in 2023 worth SAR500 million, led by Kingdom Holding alongside a consortium of investors. Funding in 2022 and 2023 accounted for more than 85 percent of total capital raised, underscoring the pace of investment alongside operational expansion.
At the time, the company’s chief executive Sami Alhelwah said it aimed to list on the Saudi stock market within two years — by this year — alongside further domestic and international expansion.
Investor concerns mount
Recent developments have raised concerns among retail investors, with social media platforms seeing growing criticism and questions about the company’s status.
One investor wrote on X that he had invested in nana via the Thiqah platform, but had received no updates. “Since investing, there has been no update on what happened to the investment, nor any report explaining the situation,” he said, adding that the platform should be responsible for safeguarding investor rights.
Competitive pressures
As nana expanded, operational challenges emerged. The quick commerce model, while reducing delivery times, significantly increases costs, especially with a growing network of branches and rising order volumes.
At the same time, intensifying competition in the delivery sector has led to sharp price pressure, with companies competing heavily on cost and speed, eroding margins.
nana is not alone in facing these challenges. In 2025, the delivery app Shgardi exited the market after six years, despite completing more than 7 million orders and serving over 3 million customers across 35 cities in Saudi Arabia.
The company cited “price burning” — aggressive discounting sometimes below cost — as a key factor behind its closure.
Financial reorganization
Saudi lawyer and commercial arbitrator Mohammed Almuzayen told Asharq Al-Awsat the Kingdom’s bankruptcy law balances business continuity with creditor protection.
He said financial reorganization is not a liquidation process but a legally empowered mechanism to help a debtor reach an agreement with creditors under court and expert supervision, allowing for restructuring rather than market exit.
Under the law, companies facing financial distress can continue operating under oversight from a court-appointed trustee. Article 69 stipulates that management typically remains in place unless there is evidence of negligence or mismanagement.
The process unfolds in two phases. The first runs from filing to court approval and includes a suspension of claims under Article 46, protecting the company from enforcement actions while it prepares a restructuring plan. The second begins after the ruling, with the company operating under trustee supervision in line with Article 57 to implement the plan.
Almuzayen described the procedure as a legal mechanism aimed at restructuring debt and restoring operations, not ending them. The system provides protection from creditor claims and allows companies to continue operating while negotiating a collective settlement.
Rights of retail investors
Individual investors are treated as creditors under the law, he explained.
Once a repayment plan is approved by the court, it becomes legally binding on the company. Creditors are classified into categories to ensure fair treatment, and committees may be formed to represent investor interests and oversee implementation.
The law also imposes strict penalties for violations such as asset dissipation or preferential treatment of certain creditors, including prison sentences of up to five years and fines of up to SAR5 million.
A turning point
With the court ruling, nana moves from a phase of funding-driven expansion into one of court-supervised restructuring.
Once seen in 2023 as a leading quick commerce growth story, the company now faces a different test — one of survival and sustainability.
Its future will depend on the restructuring plan and whether it can rebuild its operating and financial model in a highly competitive market that continues to evolve.
