Investors Suffer Major Losses as Promising Startup Fails in UAE

For hundreds of UAE investors, the Dizabo Superapp initially seemed like a golden opportunity, promising returns of up to 80% within six months. However, hopes have now crumbled as reality has set in.

Launched in September 2021, Dizabo branded itself as the region’s “first super app,” designed to transform e-commerce by connecting thousands of vendors with millions of customers across 22 product categories. The company’s motto, “the sky is the limit,” was prominently displayed in its Deira office, where a team of 80, including relationship managers, promoted the vision.

Today, this vision has collapsed, leaving investors across the UAE and GCC facing financial losses and broken trust. The company’s assets and bank accounts are frozen, its office was shut down by the Department of Economy and Tourism, and its founder, Abdul Afthab Pallikkal, now faces several legal cases in Dubai Courts after short stints in jail for defaulting on payments. Afthab claims he intended to deliver “the world’s most advanced shopping experience,” but investors tell a different story — one filled with bounced checks, unmet promises, and shattered lives.

High Returns, High Risks

Dizabo enticed investors with offers such as an initial investment of Dh43,000 to lease five delivery bikes, backed by six post-dated checks of Dh10,000 each, promising an 80% return within six months. Larger investors could invest Dh200,000 for delivery vans with similarly high returns. But payments stopped abruptly in 2023, leaving investors frustrated. Afthab continued to assure them of the platform’s impending success, yet nothing materialized, and eventually, he ceased taking their calls.

Disgruntled investors have now formed WhatsApp groups, held meetings, and taken legal action. Documents show that Afthab faces multiple cases, including arrest warrants, and has been ordered in several instances to repay investors. The exact number of affected investors remains unknown, though insiders estimate it could be in the hundreds, with losses amounting to millions of dirhams.

Lives Disrupted

Investors span diverse nationalities, including Emirati Ali (Dh344,000), Egyptian M. Atif (Dh820,000), and Pakistani A. Durrani (Dh285,000). The financial toll has deeply affected many. Indian expat Zubair Mahmood, who invested Dh200,000, faces legal battles with banks and creditors after losing his investment. “The stress even cost me my job, and I’m now under a travel ban,” he said.

Others, like Jazim Hazeem, who invested an inheritance of Dh150,000 meant for his orphaned niece and nephew, are left with feelings of guilt and shame. Aisha Mohamed, another investor, was drawn in by assurances of “guaranteed returns” but is now forced to return to work after the payments stopped. In some cases, Dizabo’s failure has even impacted family custody, such as with one mother who had to relinquish custody of her children due to financial strain.

Intimidation and Legal Trouble

Several investors have alleged intimidation from Dizabo’s team to prevent them from speaking out. Gaus Sayyad, who invested Dh50,000, claims Dizabo’s representatives threatened him with imprisonment when he sought his money. Gaus has since used social media to urge authorities to investigate Dizabo.

Although the Dizabo Superapp is available in app stores, none of the advertised services function, resulting in a surge of negative reviews. A British investor summed it up: “It’s just a mirage,” clutching dud checks worth Dh520,000.

Afthab’s Defense

Despite multiple legal cases, Afthab insists he has “done nothing wrong.” In WhatsApp messages to Khaleej Times, he described Dizabo as an innovative venture that faced “unexpected challenges” and denied running a Ponzi scheme. Afthab claims he is owed Dh18 million by 897 restaurants but could only list 250 when pressed, and several restaurant owners denied owing anything.

With Dizabo now expanding into other cities, concerns about its operations beyond the UAE continue to grow, leaving many investors wondering if justice will be served.