GFH steps into digital investment with stake in hospitality app

GFH Financial Group (GFH) upped its game in the digital investment arena by acquiring a majority stake in a popular ‘two-for-one and special offers’ hospitality app.

The ENTERTAINER, which was founded in 2001 as a printed publication in the UAE, built on its longstanding business relationships by introducing market-leading technology.

It launched an award-winning smartphone app in 2013. The app operates in a variety of languages based on location including English (global), Arabic (GCC), Greek (Athens and Cyprus) and Cantonese (Hong Kong). Last year’s annual turnover exceeded BD13m.

Consumers pay BD20.500 in Bahrain to download it for offers and savings at restaurants, attractions, leisure activities, golf clubs, water parks, spas, beauty salons, gyms, fitness centres and more – plus cut-price hotel nights around the world. The company claims the average savings per member last year was BD455.

It’s unlikely the price of taking a majority stake in the business, however, was a bargain but both parties believe it to be good business. The cost of the deal has not been revealed.

The transaction saw the existing financial investors fully exit, while the founder and chairman, Donna Benton, continues as one of the key shareholders and part of its executive management team, ‘contributing to the vision and growth of the company’ alongside GFH.

“We’re delighted that GFH have seen our huge growth potential as both a company and a technology platform and that its aim is to support and accelerate the growth of the ENTERTAINER as we continue to enhance the platform and further expand our community globally, ” she said.

GFH businesses include asset management, wealth management, commercial banking and real estate development. The group’s operations are focused in the GCC, North Africa and India. Shareholders recently approved its 2017 financial results, which saw GFH report strong net profit of $104.2m (around BD39m) for the year, reflecting significant year-on-year growth in all areas of the business when excluding one-off income recorded in 2016.

Hisham Alrayes, CEO of GFH, said: “Investing in high-growth technology-based companies is now among the cornerstones of GFH’s investment strategy.”