Al Mukhaizim: supporting companies

Al Mukhaizim: supporting companies

NIC invests in US fintech firm Pipe Technologies

01 September 2021

National Investments Company (NIC) has invested in Pipe Technologies (Pipe), a US-based fintech company, valued at $2 billion and recognised as the world’s first trading platform for recurring revenues.

In an interview with Gulf Industry, Fahad Al Mukhaizim, CEO of National Investments Company (NIC), said: “the Investment Banking Sector (IB) managed to capture many new investments in the infrastructure, real estate, credit and technology sectors. Furthermore the company started the year 2021 with a strong pipeline of mandates, including a number of M&A buy-side mandates, a number of sell-side mandates, restructuring, as well as contracts to provide general advisory services.”

Al-Mukhaizim pointed out that NIC recently invested in Pipe Technologies as part of its expanding investment strategy targeting the technology sector. Pipe is a fast-growing US-based financial technology company recognised as the world’s first trading platform for recurring revenues, with its recent fundraise valuing the business at $2 billion.

Al-Mukhaizim said: “NIC’s technology investment strategy focuses on supporting companies and founders, venture capitalists that are likely to disrupt several industries, including financial services, data security, software, and mobility, health and food.  The goal is to invest in projects and companies that are likely to have a huge impact on their respective industries and eventually the regional landscape.”

Pipe’s valuation of $2 billion was achieved in just under a year since its public launch in 2020, making it one of the fastest financial technology companies to reach this rating in history. More than 4,000 companies have signed up on the Pipe trading platform since launch, and over 25% of the companies on the platform operate in non-Service as a Software verticals. Tradable annual recurring revenue on the Pipe platform is in excess of $1 billion and trending toward $2 billion, with tens of millions of dollars being traded every month.

Al Mukhaizim added: “Pipe has received strong interest from leading global investors in the venture capital sector and offers considerable scope for long-term returns and capital appreciation.  The company offers an excellent platform for subscription-based companies to access growth capital in a debt-free way through securitising their revenue streams. This is especially important for fast-growing companies that would otherwise need to access funds by raising capital at dilutive terms.”  

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