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