UAE Investors Hit Hard by Sudden Shutdown of Dizabo App

The Dizabo Super app used to offer handsome returns to hundreds of investors in the UAE. They gladly invested because they thought they could make up to 80% in just six months, but their dreams collapsed.

Dizabo, which came out in September 2021, called itself the “first super app” in the area. Its goal was to change the way people shop online by linking millions of customers with thousands of sellers in 22 different product categories.

The company’s motto, “the sky is the limit,” set an upbeat tone in its Deira office, where 80 people, including relationship managers, worked hard to bring in investors.

That goal has lost its shine now. The bank accounts and assets of the company have been frozen, its office has been closed by the Department of Economy and Tourism, and its 33-year-old South Indian founder, Abdul Afthab Pallikkal, is facing various cases in Dubai Courts after serving brief jail terms for payment failures.

Investors say Afthab’s goal was to make “the world’s most advanced shopping experience,” but they say he instead caused them to lose money, bounce checks, and break promises.

High Risk, High Reward: The Investor’s Philosophy

Dizabo’s tempting offer offered big returns: for a start-up cost of Dh43,000, investors could rent five delivery bikes backed by six post-dated checks for Dh10,000 each. Within six months, investors were promised an 80% return rate. Investors with more capital could consider purchasing four delivery vans for Dh200,000, which would yield a similarly attractive return.

But in 2023, payouts to investors stopped all of a sudden for no reason. Even though Dizabo’s leaders told founder Afthab over and over that the company was about to have a big success, he finally stopped talking to anyone.

Dissatisfied investors started meeting, created WhatsApp groups, and eventually went to court over their growing worries. Documents show that Afthab is now facing several cases. The Dubai Courts have issued arrest warrants for him and told him to pay back his owners. In the end, the government stepped in and shut down the company.

Stories of Investors & Financial Loses

When Dizabo closed, it caused a lot of financial and emotional damage. Investors come from a wide range of countries and backgrounds, and losses are in the millions of dirhams.

Others who were affected are Ali (Emiri, Dh344,000), M. Atif (Egyptian, Dh820,000), A. Durrani (Pakistani, Dh285,000), and many more from around the world, including a Dutchman who put in Dh2 million.