UAE: Investors lose hundreds of thousands of dirhams after Dizabo app shuts down

For hundreds of investors in the UAE, Dizabo Superapp once seemed like a golden opportunity. Promised returns of up to 80 per cent in just six months drew them in, but as reality set in, they grappled with failed dreams.

Launched in September 2021, Dizabo branded itself as the region’s “first super app", aiming 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", adorned the walls of its Deira office, where a team of 80, including relationship managers, worked to sell the vision.

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Today, however, that promise has crumbled, leaving investors across the UAE and GCC with empty pockets and broken trust. The company’s assets and bank accounts are frozen, its office shut down by the Department of Economy and Tourism, and its founder, 33-year-old Abdul Afthab Pallikkal from South India, faces several cases in Dubai Courts after brief stints in jail for defaulting on payments.

While Afthab insists he aimed to deliver “the world’s most advanced shopping experience", investors tell a starkly different story — one marked by bounced cheques, broken promises, and lives changed.

High returns, higher risks

Dizabo enticed investors with an offer: For an initial investment of Dh43,000, they could lease five delivery bikes, backed by six post-dated checks of Dh10,000 each. This setup promised an 80 per cent return, turning Dh43,000 into Dh60,000 within half a year. Larger investors could invest Dh200,000 for four delivery vans, with similarly high returns.

In 2023, payments abruptly stopped without explanation. Although Dizabo's leadership continued to reassure investors that the platform was on the brink of even greater success, nothing materialised, and founder Abdul Afthab stopped taking calls.

Disgruntled investors banded together, forming WhatsApp groups, holding meetings and taking legal measures. Documents shared by investors reveal that Afthab faces multiple cases in Dubai Courts, including arrest warrants. In many instances, he has been ordered to repay investors. Eventually, local authorities shut down the company.

As the dust settled, the extent of Dizabo’s impact became clear. The exact number of those affected remains unknown, though company insiders suggest it could number in the hundreds, with losses running into millions of dirhams.

The list of investors spans diverse nationalities and backgrounds: Ali (Emirati) contributed Dh344,000; M. Atif (Egyptian) added Dh820,000; A. Durrani (Pakistani) Dh285,000; Ni War Hlaing (Myanmar) Dh650,000; I. Tsegaye (Ethiopian) and Maksym (Ukrainian) each put in Dh150,000; Samira (Iranian) Dh200,000; Wajih Chehade (Palestinian) Dh68,000; Dris Boughdir (Moroccan) Dh900,000; and S.B. (Indian) Dh250,000. Others include a Dutch national with Dh2 million, a British woman with Dh430,000, and a Filipina school teacher with Dh100,000.

Lives disrupted

For many, the collapse wasn’t just a financial blow — it disrupted entire lives. Indian expat Zubair Mahmood, who invested Dh200,000, is grappling with bounced checks and legal battles with banks and creditors.

“My life is a daily struggle. My mother needed surgery for cancer, and we had to sell our ancestral jewellery to pay for it,” he said in an interview with Khaleej Times. "The stress even cost me my job, and my mounting debts resulted in a travel ban. This has shattered my family.”

Zubair recalled his desperate attempt to reach out to Afthab when his payouts stopped. “I pleaded with him. When that didn’t work, I threatened him with a lawsuit,” he said. “He told me, ‘I’m not scared of cases — I’ve dealt with many cases before. I have a team for this.’ That’s when I knew he had no intention of making things right.” Zubair eventually filed legal cases and now has an arrest warrant against Afthab.

Others, like Jazim Hazeem, an employee at a Dubai government entity, faced similar circumstances. Jazim invested Dh150,000 from an inheritance meant for his orphaned niece and nephew, hoping to secure their future. “I feel like I’ve failed them,” he said. “Each month, I scrape together Dh3,500 to support them, but all I feel is shame.”

Aisha Mohamed from India said she was drawn to Dizabo’s model after company representatives assured her that her investment was “guaranteed by Dubai Court agreements.” Initially, she received timely payments, but they soon stopped, creating financial strain during her high-risk pregnancy. Having left a well-paying job, Aisha now finds herself forced to return to work. “This has impacted my health and my family’s future,” she said.

Another resident, who wished to remain anonymous, blames Dizabo for losing custody of her children. She invested Dh250,000 after being promised Dh15,000 in monthly returns. Initially, payments trickled in — often late and only after repeated follow-ups —but eventually stopped altogether. “I was left with just my monthly salary and my two kids,” she said. “I had to let my ex-husband take custody because I could not provide them with a good life. Since then, I haven’t seen my children."

Her ordeal did not end there. She allegedly faced intimidation from Dizabo’s team. “They blackmailed me, threatening to file a case if I spoke out on social media,” she revealed.

Yet another investor, Gaus Sayyad detailed his experience, reflecting the widespread concern among investors. Despite cases against it, Dizabo continued to advertise on platforms like Facebook and Instagram. “I invested Dh50,000, but I haven’t seen a cent,” he said. “I even took out a bank loan.”

When he sought to reclaim his money, the company resorted to intimidation. “They acted like police officers, threatening to imprison me if I spoke out.”

Since then, Gaus has taken to social media to warn others and urge authorities to investigate Dizabo. “I lost my job two months ago and borrowed from the bank,” he said. “Now, my account is in the negative. I just want to live a peaceful life, but they’re holding onto my hard-earned money.

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