Dubai fuel delivery startup Cafu explores first stake sale

Dubai-based Cafu, a fuel-delivery service, is looking to raise funds by selling a stake in the business for the first time, according to people familiar with the matter.

The startup, founded in 2018 by Rashid Al Ghurair - a well-known family conglomerate with operations across sectors including foods, resources, properties and construction, is working with Lazard Ltd., the people said, requesting anonymity because the information is private. The discussions are at a preliminary stage, and no final decisions have been made.

Representatives for Cafu and Lazard declined to comment.

Cafu is best known for its blue-green trucks that crisscross major cities in the United Arab Emirates, delivering fuel to clients' doorsteps at the same price charged at regular petrol stations. In recent years, it has introduced additional services such as mobile car washes, battery replacements and electric vehicle recharging. The company is also active in Canada.

In a major shift in its business model, the company said in a note to clients yesterday that it will begin charging a fee for fuel deliveries, calling it "a small change so we can keep doing things right." (Link to Dhanusha's story)

A Cafu executive told a local publication two years ago that "financing is another major challenge, especially because we took an approach to reduce the amount of equity fundraising."

For Lazard, which recently set up an office in Abu Dhabi, securing the mandate would mark a welcome win as it seeks to capture market share in a region dominated by more prolific rivals, Rothschild & Co. and Moelis & Co.