Our Investment Philosophy

All investors face a major challenge as they seek good growth in an industry that generally delivers low returns.  At the same time an increase in regulation makes it hard to access higher returns which tend to be found in riskier markets and asset classes.  This process of de-risking means that many of the real opportunities for good growth are off limits to larger institutions.

This creates an opportunity for private capital and family offices which have greater freedom to identify and invest in higher risk growth opportunities.  But very few investors can find the right opportunities in these markets, understand the risks, and are able to invest and exit successfully.  It takes an entrepreneurial team to do this.

Pomegranate Investment AB (publ) is based in Sweden and was founded in 2014 by a pioneering team with a long and successful track record of investing in high growth companies in emerging markets, particularly in the technology sector.

Pomegranate is an investment company, currently invested in in Iran’s consumer technology sector, which, with the easing of international sanctions, represents an extraordinary growth opportunity for investors. We are entrepreneurs, we invest in entrepreneurs and a significant proportion of our investors are entrepreneurs themselves.

Investment Approach

Achieving mutual growth for investors, companies and partners’

The Pomegranate team has honed an investment approach over decades successfully investing in emerging markets. The team has invested together with local partners in order to develop high growth companies in the consumer technology space in Iran. This is a market that represents a unique investment opportunity now that sanctions have eased, and institutions and family offices are now able to consider investing in the country to support local businesses in driving growth in the Iranian market.  Pomegranate’s founders and senior management are  all personally invested in the company and have also committed to transfer their management experience and knowledge to the local businesses.

Our investors are a combination of entrepreneurs, financial institutions and family offices in Europe. We are an investment company (not a fund), our investment model is through participating in the risk and sharing long term returns and therefore we do not charge an annual management fee nor a carry. Our investment platform provides the investors with an investment company structure with high standards of compliance and transparent financial model that, unlike so many asset management fee structures, ensures a minimum amount of capital is taken out of the company to meet the operational expenses.

This approach means that Pomegranate shares the risk and success with our investors and investees when we successfully develop our investments.

We have primarily invested in the fast growing consumer technology sector. We have invested through strong local partners, holding minority positions and worked closely with management as they face the challenges of fast growth so they benefit from our  global experience and knowhow gained from investing in other similar markets. Knowhow transfer is what we do and have done successfully in other markets.

Pomegranate has mainly provided private equity to unlisted companies, but may consider providing debt and hybrid financing if deemed appropriate on a case-by-case basis.

At Pomegranate we aim to achieve mutual growth for our investors and the companies we invest in.  We ourselves will only benefit from investing, as well as developing and helping grow our partners by considering exiting these positions successfully in the very long term.

The Iran Opportunity

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

Iran’s Economy

With the recent easing of international sanctions, the Iranian economy is now a serious prospect for qualified investors.

LARGE ECONOMY – Iran’s current GDP ($416 billion) places it between Turkey and Thailand in scale.

POPULATION – With more than 80 million people, many of whom are urbanised and highly educated, Iran represents one of the biggest consumer markets that is yet to be fully developed.

RESOURCES – Iran has 18% of the world’s proven natural gas reserves (1st in global rankings), 9% of the world’s crude (4th globally) and huge mineral deposits.

And yet Iran’s economy is only moderately dependent on oil sales. In 2014, petroleum exports accounted for only 13% of GDP.

Iran’s young consumer internet sector

Iran’s young consumer internet sector is driven by demographics. Above 60% of the population is aged under 35 and highly connected, with >50% internet penetration, >100% cell phone penetration and 20-40 million smartphone users. And yet, the value of Iran’s internet companies accounts for 0.04% of GDP, way behind other companies with similar dynamics. With rapid growth in online shopping the sector offers huge potential for value appreciation and to provide new, world-leading services to Iranian consumers.