UAE: Investors Face Massive Losses After Dizabo App’s Sudden Shutdown

For hundreds of investors in the UAE, the Dizabo Super app once promised lucrative returns. Lured by potential gains of up to 80% in just six months, they invested eagerly, only to see their dreams collapse.

Launched in September 2021, Dizabo branded itself as the region’s “first super app,” with a vision to revolutionize e-commerce by connecting thousands of vendors with millions of customers across 22 product categories.

In its Deira office, the company’s slogan, “the sky is the limit,” set an ambitious tone, and a team of 80 employees, including relationship managers, worked tirelessly to attract investors.

Today, that ambition has faded. The company’s assets and bank accounts are now frozen, its office has been shut down by the Department of Economy and Tourism, and its founder, 33-year-old Abdul Afthab Pallikkal from South India, faces multiple cases in Dubai Courts following brief jail stints for payment defaults.

While Afthab claims he set out to create “the world’s most advanced shopping experience,” investors share a vastly different story filled with bounced checks, broken promises, and financial ruin.

High Risks, Higher Returns

Dizabo’s attractive offer promised significant returns: for an initial investment of Dh43,000, investors could lease five delivery bikes, backed by six post-dated checks of Dh10,000 each, with an 80% return rate promised within six months. Those with deeper pockets could invest Dh200,000 for four delivery vans with similarly high returns.

However, in 2023, payments to investors suddenly stopped without explanation. Despite repeated reassurances from Dizabo’s leadership that the company was on the verge of new success, founder Afthab eventually ceased communication altogether.

As concerns grew, disgruntled investors formed WhatsApp groups, held meetings, and pursued legal action. Documents show that Afthab now faces multiple cases, with Dubai Courts issuing arrest warrants and ordering him to repay investors. Ultimately, authorities intervened, closing the company.

Financial Losses and Investor Stories

Dizabo’s closure left a wide trail of financial and personal devastation. Investors hail from diverse backgrounds and nationalities, with losses running into millions of dirhams.

The affected include Ali (Emirati, Dh344,000), M. Atif (Egyptian, Dh820,000), A. Durrani (Pakistani, Dh285,000), and many more from across the globe, including a Dutch national who invested Dh2 million.

For many, the fallout extended beyond money. Zubair Mahmood, an Indian expat who invested Dh200,000, shared how the ordeal disrupted his life: he now battles bounced checks and legal struggles with banks. “I lost my job, and the stress has shattered my family,” he said, recalling how he had to sell family jewelry to cover medical bills after payments from Dizabo ceased.

Others, like Jazim Hazeem, an employee in Dubai’s public sector, invested Dh150,000 from an inheritance intended for his orphaned niece and nephew. “I feel I’ve failed them,” he said.

Another investor, Aisha Mohamed, shared that the financial strain forced her to return to work after she left a well-paying job due to her high-risk pregnancy.

An anonymous woman reported losing custody of her children after the promised returns from her Dh250,000 investment never materialized. Left with no other choice, she let her ex-husband take custody, as she could no longer support them. Her ordeal didn’t end there; she claims Dizabo’s team threatened her with legal action if she spoke out on social media.

Allegations of Intimidation and Intimidating Tactics

Numerous investors describe Dizabo’s use of intimidation tactics, allegedly threatening those who sought refunds. Gaus Sayyad, who invested Dh50,000, reported that company representatives acted like “police officers,” threatening to imprison him if he spoke out publicly.

Gaus, who recently lost his job and now faces severe financial difficulties, has since taken to social media to warn others, urging authorities to investigate.

Despite its closure, the Dizabo app remains available on Google Play and the App Store, though its services have ceased functioning, leading to a flood of negative reviews. “It’s just a mirage,” said a British investor who holds bounced checks from Dizabo worth Dh520,000.

Dizabo Founder Claims Innocence Amid Mounting Cases

Investigations by Khaleej Times reveal that multiple cases have been filed against Afthab, who continues to claim innocence, citing “unexpected challenges” as the reason for Dizabo’s collapse.

In WhatsApp messages to Khaleej Times, he asserted that he had done “nothing wrong” and that Dizabo was a unique product with no global equivalent. “I can’t go outside due to many cases,” he wrote, adding that Dizabo’s troubles stem from the loss of delivery drivers to larger companies, not from any wrongdoing.

Afthab maintains he will overcome the situation, stating that Dizabo needs to recover Dh18 million from 897 restaurants, each allegedly owing between Dh10,000 and Dh25,000.

However, when contacted, several restaurants denied any debts to Dizabo, with one even considering legal action against the company for damaging its reputation through undelivered services.

As investors seek answers and await potential restitution, Dizabo’s expansion to multiple cities worldwide raises fresh concerns, leaving many wondering if the troubled app could continue its controversial operations beyond the UAE.