Car subscription startup Invygo drives off with $10M for expansion

Car subscription startup Invygo has raised $10 million in Series A funding to expand into new markets and enhance its core technology.

Middle East Venture Partners (MEVP) led the round, with Al Rajhi Partners, Arab Bank, Amana Capital, Palm Drive Capital, Signal Peak Ventures and Knollwood Investment Advisory also participating.

The latest funding brings Invygo’s total capital raised to $14.6 million.

Launched in 2019, the Dubai- and Riyadh-based company is “an app-based service that allows customers to choose, drive and swap cars at the tap of a button.”

Eslam Hussein, co-founder and CEO of Invygo, says the mobile app “provides customers with unparalleled convenience and financial flexibility.”

“We are excited to welcome world-class investors on board as we strengthen our leadership position in Saudi Arabia and the [United Arab Emirates], along with plans for regional expansion,” Hussein adds.

“We offer investors a financially sustainable model which is fit for the current macroeconomic environment and builds confidence in our business.”

The asset-light company does not own the cars provided to customers; it has partnered with several car distributors and rental companies from which customers in the UAE and Saudi Arabia can rent cars for a monthly subscription fee. Cars are delivered to the customer’s doorstep, and brands range from Kia and Nissan to BMW, Mercedes and Range Rover.

The app’s bundled offering includes insurance, maintenance, servicing and roadside assistance at no additional charge, Invygo says.

“Right now, we are focused on doubling down in Saudi Arabia and UAE,” Hussein says. “We are always looking for new opportunities in markets that have similar challenges of low vehicle penetration and financial inclusion, such as Egypt, Pakistan and Turkey.”

Invygo says it uses AI-based data modeling tools to forecast demand, pricing and market growth. Through the app’s “subscribe-to-own” feature, customers can choose to buy the car after using it.

Says Ali Almajthoob, executive director at MEVP, “financing challenges have limited the possibilities for car ownership, and this is a problem that Invygo is solving.”

“We are excited to back Invygo as they reimagine the traditional car ownership model and create opportunities for consumers and the industry across [the Middle East and North Africa],” says Almajthoob.

Dubai-based Udrive, a startup that enables customers to rent cars by the minute, raised $5 million in February.