Investing for positive impact in emerging markets

Iran’s consumer internet sector represents a unique emerging market opportunity.

Iran’s young consumer internet sector is driven by demographics. Above 70% of the population is aged under 45 and highly connected, with >80% internet penetration, >140% cellular mobile penetration and >50 million smartphone users. And yet, the value of Iran’s internet companies only accounts for between 1-2% of GDP, way behind other companies with similar dynamics. Online retail penetration is estimated to be around 2% in Iran; in comparable markets like Turkey, that number is 10-15%, therefore offering a unique structural growth aspect. As a result, rapid growth in the online shopping sector offers huge potential for value appreciation and to provide new, world-leading services to Iranian consumers.

The unique demographics of Iran with a growing large, young and well-educated, and central and urbanised population is ideal for Pomegranate’s investments in consumer online sectors such as e-commerce, online classifieds, and online travel to mention a few.