Digikala: Difference between revisions

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'''Digikala''' ({{lang-fa|دیجی‌کالا|translit=Dijikalâ|lit=digi(tal) goods}}) is an [[Iran|Iranian]] [[e-commerce]] company based in [[Tehran]], founded in July 2006 by Hamid Mohammadi and Saeid Mohammadi.<ref>{{Cite news |last=Fung |first=Brian |date=14 July 2015 |title=The Washington Post:What the Iran deal means for the country's surprisingly strong tech industry |newspaper=[[The Washington Post]] |url=https://www.washingtonpost.com/news/the-switch/wp/2015/07/14/what-the-iran-deal-means-for-the-countrys-surprisingly-strong-tech-industry/ |url-status=live |archive-url=https://web.archive.org/web/20201205123135/https://www.washingtonpost.com/news/the-switch/wp/2015/07/14/what-the-iran-deal-means-for-the-countrys-surprisingly-strong-tech-industry/ |archive-date=5 December 2020}}</ref><ref>{{cite news |title=Digikala is the Largest Online Marketplace in Iran and the Middle East|url=https://finance.yahoo.com/news/digikala-largest-online-marketplace-iran-150000109.html |access-date=3 September 2021 |work=finance.yahoo.com |archive-url=https://web.archive.org/web/20210903140144if_/https://au.finance.yahoo.com/news/digikala-largest-online-marketplace-iran-150000109.html |archive-date=3 September 2021 |url-status=dead}}</ref><ref>{{Cite web |date=9 February 2016 |title=Iranian Startups Come of Age |url=https://iranwire.com/en/society/61636/ |access-date=18 September 2022 |website=Iran Wire |language=en}}</ref>

The e-commerce platform is designed to offer a wide range of [[consumer products]], which includes [[Sports equipment|sports and entertainment goods]], [[electronics]], [[groceries]], [[Personal care|personal products]], and [[Software|digital products]] with a return option <ref>{{Cite web |date=9 February 2022 |title=Total guide on DigiKala's return services |url=https://www.zoomit.ir/howto/378820-how-report-return-counterfeit-products-digikala/ |url-status=live}}</ref> and express delivery service.

Digikala was founded in 2006 by twin brothers Hamid and Saeid Mohammadi, prompted by an unpleasant experience they had trying to buy a [[digital camera]]. The pair used $10,000 of their own savings to start the company.<ref>{{cite web |last1=Guttman |first1=Amy |title=Meet The Twin Brothers Transforming How Iranians Shop |url=https://www.forbes.com/sites/amyguttman/2015/01/26/twin-brothers-transforming-how-iranians-shop/3/#60aa5f533fd5 |website=Forbes |archive-url=https://web.archive.org/web/20220918054425/https://www.forbes.com/sites/amyguttman/2015/01/26/twin-brothers-transforming-how-iranians-shop/?sh=42eb215c57aa |archive-date=18 September 2022 |language=en |date=26 January 2015 |url-status=live}}</ref> The company's valuation was $150 million in 2014 and $500 million in late 2015.<ref>{{Cite news |last=McFarland |first=Matt |date=10 November 2014 |title=Here's what it's like to launch a start-up in Iran |url=https://www.washingtonpost.com/news/innovations/wp/2014/11/10/heres-what-its-like-to-launch-a-start-up-in-iran/ |url-status=live |archive-url=https://web.archive.org/web/20220520175652/https://www.washingtonpost.com/news/innovations/wp/2014/11/10/heres-what-its-like-to-launch-a-start-up-in-iran/ |archive-date=20 May 2022 |newspaper=The Washington Post}}</ref><ref>{{Cite web |last=Sharif |first=Hossein |date=12 October 2015 |title=Iran's digital start-ups signal changing times |url=https://www.bbc.com/news/world-middle-east-34458898 |url-status=live |archive-url=https://web.archive.org/web/20220423232648/https://www.bbc.com/news/world-middle-east-34458898 |archive-date=23 April 2015 |website=BBC}}</ref> As of 2021, more than 4 million products have been offered for sale by nearly 160,000 sellers.<ref>{{cite news |title=وضعیت دیجی کالا در پیک چهارم کرونا چگونه است؟ |url=https://www.farsnews.ir/news/14000129000579/%D9%88%D8%B6%D8%B9%DB%8C%D8%AA-%D8%AF%DB%8C%D8%AC%DB%8C-%DA%A9%D8%A7%D9%84%D8%A7-%D8%AF%D8%B1-%D9%BE%DB%8C%DA%A9-%DA%86%D9%87%D8%A7%D8%B1%D9%85-%DA%A9%D8%B1%D9%88%D9%86%D8%A7-%DA%86%DA%AF%D9%88%D9%86%D9%87-%D8%A7%D8%B3%D8%AA |language=Persian}}</ref> The platform has 30 million visitors per month<ref name="financialtribune">{{cite news |date=23 August 2021 |title=Iran E-Commerce Trending Higher |agency=financialtribune |url=https://financialtribune.com/articles/sci-tech/109916/iran-e-commerce-trending-higher |access-date=1 October 2021}}</ref> and receives 17.2 million visits per day.<ref>{{cite news |date=22 August 2021 |title=Iran E-Commerce Trending Higher |agency=eghtesadonline |url=https://www.en.eghtesadonline.com/Section-iran-economy-67/35567-iran-commerce-trending-higher |access-date=1 October 2021}}</ref> It was also ranked as Iran's 2nd most visited website.<ref>{{Cite web |title=Alexa: Top Sites in Iran |url=http://www.alexa.com/topsites/countries/IR |url-status=dead |archive-url=https://web.archive.org/web/20220501153829/https://www.alexa.com/topsites/countries/IR |archive-date=1 May 2022 |website=Alexa}}</ref>

Digikala is one of the Iranian [[startups]] that has benefited from the country's increasing [[Digitization economics|digitization]]. By 2017, 62% of Iran's households were connected to the [[Internet]] and this development has driven demand for Internet services that mirror Western digital platforms.<ref>{{Cite web|url=https://en.radiofarda.com/a/iranian-startups-offer-opportunities-in-an-unstable-economy/29710513.html|title=Iranian Startups Offer Opportunities In An Unstable Economy|website=RFE/RL|language=en|access-date=9 May 2019}}</ref> It is the largest [[e-commerce]] platform in the [[Middle East]]<ref>{{Cite news|url=https://www.theguardian.com/technology/2015/may/31/amazon-iranian-style-digikala-other-startups-aparat-hamijoo-takhfifan|title=From Digikala to Hamijoo: the Iranian startup revolution, phase two|last=Dehghan|first=Saeid Kamali|date=31 May 2015|work=The Guardian|access-date=9 May 2019|language=en-GB|issn=0261-3077}}</ref> with 1,700,000<ref>{{Cite web |title=دیجی‌کالا بزرگ‌ترین مرکز پردازش سفارش در خاورمیانه را راه‌اندازی کرد |url=https://www.zoomit.ir/2017/10/22/223731/digikala-fullfillment-center/ |website=Zoomit |date=22 October 2017 |language=Persian}}</ref> unique visitors per day. Also, 85% of Iran's e-commerce now takes place on Digikala.<ref>{{Cite web |last=Dehghan |first=Saeed |date=31 May 2015 |title=The Guardian: From Digikala to Hamijoo: the Iranian startup revolution, phase two |url=https://www.theguardian.com/technology/2015/may/31/amazon-iranian-style-digikala-other-startups-aparat-hamijoo-takhfifan |url-status=live |archive-url=https://web.archive.org/web/20220408125651/https://www.theguardian.com/technology/2015/may/31/amazon-iranian-style-digikala-other-startups-aparat-hamijoo-takhfifan |archive-date=8 April 2022 |website=The Guardian |language=en}}</ref> The company does not publicize its [[revenue]], but has said sales are growing at a rate of 200% a year, and that it is receiving orders from even the most remote villages in Iran.<ref>{{Cite news |title=FT:Iranian e-commerce thrives despite obstacles |newspaper=Financial Times |date=October 2014 |url=http://www.ft.com/cms/s/0/e44136e6-3cdb-11e4-9733-00144feabdc0.html |url-access=subscription}}</ref>

Iran's economic [[Volatility (finance)|volatility]] forced Digikala to lay off 175 workers in 2018.<ref>{{Cite web |date=7 September 2018 |title=In Face of Hard Times Iran's Digikala Remains Upbeat |url=https://financialtribune.com/articles/sci-tech/93086/in-face-of-hard-times-irans-digikala-remains-upbeat |url-access=subscription |access-date=9 May 2019 |website=Financial Tribune |language=En}}</ref> To survive, the platform adopted several initiatives such as a [[Pay per sale|pay-per-sale]] strategy which allow users to receive a [[Commission (remuneration)|commission]] if a directed customer purchases a product.<ref>{{Cite web |date=21 September 2018 |title=Digikala Enlists Pay-Per-Sale Strategy |url=https://financialtribune.com/articles/sci-tech/93861/digikala-enlists-pay-per-sale-strategy |url-access=subscription |access-date=9 May 2019 |website=Financial Tribune |language=En}}</ref> In March 2019, Digikala also addressed the issue of author authenticity of products in the platform after receiving complaints over the quality of goods being sold. In a statement, the company claimed that only 0.2% of the 2 million products sold were unoriginal and that the company has taken steps to implement stringent [[quality control]].<ref>{{Cite web|url=https://financialtribune.com/articles/sci-tech/97148/digikala-to-carry-out-stringent-quality-control|title=Digikala to Carry Out Stringent Quality Control|date=12 March 2019|website=Financial Tribune|language=En|access-date=9 May 2019}}</ref>

Digikala started working with Hamid and Saeed Mohammadi's initial personal capital of 20 million tomans. Six years after its foundation, it entered the next phase of its business expansion by attracting investors. The Iranian private company Sarava Pars started investing in DigiKala in 2013. The second step of DigiKala's investment started in 2014 by attracting the capital of a European investment fund named International Internet Investment Company (IIIC). According to the government's 100-day report, Digikala started the capital raising process in January 2014 through IIIC in the amount of 100 million dollars in the form of a capital increase and in exchange for granting 21% of shares. foreign has been completed by Iran's Investment and Economic and Technical Assistance Organization. According to the managers of Digikala in December 2017, 35% of Digikala Group's shares are owned by Sarava, 35% by Mohammadi Brothers, nearly 25% by the Dutch investment company - The IIIC European Fund, and the others are also incentive shares of 80 key managers of Digikala.

In 2021, Digikala planned to increase its number of associates to 10,000. <ref>{{Cite web |title=معاون منابع انسانی دیجی‌کالا: امسال یک خانواده ۱۰ هزار نفری می‌شویم • اتاق خبر دیجی‌کالا |url=https://www.digikala.com/mag/video/digikala-human-resources-interview/ |access-date=2022-11-27 |website=دیجی‌کالا مگ |language=fa-IR}}</ref> As of 2022, Digikala employs more than 8,000 people.

At first, Digikala sold only [[Digital goods|digital]] and electronic goods on its website. Since 2014, Digikala has changed its strategy to become an [[Online shopping|online store]] with many different types of goods available.

The Digikala Group is active in [[logistics]], e-commerce, content, [[Financial technology|fintech]], martech, and innovative fields.<ref name="digikala-1399">{{cite web |title=گزارش سال ۱۳۹۹ دیجی‌کالا |url=https://www.digikala.com/mag/lp/report-1399/ |website=digikala.com |publisher=Digikala |access-date=3 September 2021}}</ref> Digikala owns more than 10 [[Subsidiary|subsidiaries]], including Fidibo, Digistyle, Digipay, Pindo and Komoda.<ref name='cision'>{{cite web |title=Pomegranate Investment AB (publ) Releases Financial Report for the period of 6 months ended October 31, 2020. |url=https://news.cision.com/pomegranate-investment-ab/r/pomegranate-investment-ab--publ--releases-financial-report-for-the-period-of-6-months-ended-october-,c3258369 |website=news.cision.com |publisher=Pomegranate Investment AB |access-date=3 September 2021}}</ref><ref name='zoomit'>{{cite web |title=فروشگاهی که هلدینگ شد؛ نگاهی به ساختار و عملکرد گروه دیجی کالا |url=https://www.zoomit.ir/tech-iran/372691-digikala-market-as-holding/ |website=zoomit |date=17 July 2021 |access-date=1 October 2021}}</ref>

Fidibo is a legal Persian [[Ebook|e-book]] store that has been operating since March 2014. Digikala bought a part of Fidibo shares in 2016 and became its main owner in 2017 by increasing its investment. Fidibo released their first exclusive [[Electronic paper|e-ink]] reader called Fidibook with [[Persian language|Persian]] language support in May 2018.<ref>{{cite web |title=واگذاری یکی از اپلیکیشن‌های کتابخوان به یک فروشگاه اینترنتی |url=https://www.mehrnews.com/news/3904173/%D9%88%D8%A7%DA%AF%D8%B0%D8%A7%D8%B1%DB%8C-%DB%8C%DA%A9%DB%8C-%D8%A7%D8%B2-%D8%A7%D9%BE%D9%84%DB%8C%DA%A9%DB%8C%D8%B4%D9%86-%D9%87%D8%A7%DB%8C-%DA%A9%D8%AA%D8%A7%D8%A8%D8%AE%D9%88%D8%A7%D9%86-%D8%A8%D9%87-%DB%8C%DA%A9-%D9%81%D8%B1%D9%88%D8%B4%DA%AF%D8%A7%D9%87-%D8%A7%DB%8C%D9%86%D8%AA%D8%B1%D9%86%D8%AA%DB%8C |website=Mehrnews Agancy |date=13 February 2017 |publisher=Mehrnews Agancy |access-date=3 September 2021}}</ref>

Digistyle, an online fashion and clothing store, was founded in 2016. It sells more than 100,000 different goods in its store.<ref name="cision" /><ref name="digikala-1399" />

Digipay started out in 2018, and its objective is to create a sustainable and comprehensive financial solution with a focus on [[Mobile phone|mobile]] and web payments. Digipay services include Smart IPG, [[merchant]] management dashboard, mobile [[payment gateway]], customer refund service, personal and organizational [[Digital wallet|wallets]], mobile payment application, [[API|API-based]] services, and installment purchase facility to its customers.<ref name="cision" />

Komoda is an Iranian social buy-and-sell [[Startup company|startup]] platform. It was founded in July 2018 and has been a Digikala group member since late 2019.<ref name="zoomit-komodaa">{{cite news |title=دیجی کالا در استارتاپ کمدا سرمایه‌گذاری کرد |url=https://www.zoomit.ir/tech-iran/348124-digikala-investment-in-komodaa/ |access-date=3 September 2021 |agency=zoomit |publisher=ZoomIT |date=2 May 2020}}</ref> Komoda, currently hosts over 500,000 active posts and has demonstrated fast growth in sales.<ref name="cision" /><ref name="digikala-1399" />

In 2021, Digikala launched a new product called Pindo, a platform for registering [[Advertising|advertisements]] for buying and selling goods and providing C2C services. With Pindo, users can publish advertisements for the sale of their goods and services and can also create a link between their advertisement and Digikala product page.<ref name="digikala-1399" /><ref>{{cite news |date=4 April 2021 |title=دیجی کالا اپلیکیشن پیندو را رسما برای دانلود در دسترس عموم کاربران قرار داد |language=Persian |agency=Digiato |url=https://digiato.com/article/2021/04/04/%D8%AF%D8%A7%D9%86%D9%84%D9%88%D8%AF-%D9%BE%DB%8C%D9%86%D8%AF%D9%88 |access-date=3 September 2021}}</ref>

In the summer of 2019, Digikala Group chose Smartech as its dedicated [[marketing]] technology service provider. This partnership was initially formed to satisfy Digikala’s marketing technology needs and continued to provide marketing technology solutions to other businesses as well. Smartech is currently operating as one of the companies in the Digikala group.<ref>{{cite web |title=About Smartech |url=https://smartech.ir/about |website=Smartech |access-date=1 October 2021}}</ref><ref name="zoomit" />

=== Digiexpress ===

DigiExpress started out in 2019 as part of Digikala Group, it initiated its activities in Logistics & SCM [[Digital ecosystem|ecosystem]] with the vision to enhance the quality of customer's experience in online Logistics Services.<ref name="zoomit" />

Digikala launched Digikala Jet in the summer of 2021, which serves as a [[Personalized marketing|personalized]] [[Online grocer|online grocery]] shopping services provider. Cities like [[Tehran]], [[Karaj]], [[Mashhad]], and [[Shiraz]] are covered by this service. The service is expanding to other large cities according to Digikala chiefs.<ref>{{cite news |title=محصول جدید گروه دیجی‌کالا آغاز به کار کرد / دیجی‌کالا جت؛ ارسال رایگان و سریع سفارش‌های سوپر مارکتی |url=https://way2pay.ir/239560/ |access-date=22 October 2021 |work=راه پرداخت |date=5 August 2021 |language=fa-IR}}</ref><ref>{{cite news |title=دیجی‌کالا جت برای ارسال سریع‌تر سفارش‌ها با شرکت‌های لجستیکی همکاری می‌کند |url=https://www.zoomit.ir/tech-iran/375237-digikala-jet-started-operating/ |access-date=22 October 2021 |work=زومیت |date=10 October 2021 |language=fa}}</ref>