Invygo, a Dubai and Riyadh-based car subscription start-up, has raised $1.9 million and plans to expand regionally and further build its technology platform.
Investors including Signal Peak Ventures, JS Group, Wealth Well and Knollwood Investment Advisory participated in the pre-series A growth funding round. Several family offices from Saudi Arabia were also part of the financing deal, the start-up said.
The latest funding has brought the total capital raised so far by Invygo to $4.2m.
“As we continue to expand across the Middle East, we are excited to welcome investors who share our vision to unlock the potential of the rapidly growing car subscription sector,” said Eslam Hussein, co-founder and chief executive of Invygo.
“By leveraging innovative technology, we are helping dealers and rental companies to monetise their inventory, while creating a generational shift in how people around the region access cars.”
The Covid-19 pandemic propelled the company’s business as people avoided public transport amid social distancing requirements and looked for cheaper options to use cars independently.
“Our focus is on continued expansion across multiple fronts … geography, partners and inventory,” said Mr Hussein.
“We will be expanding our presence in the UAE and Saudi Arabia over the coming months. As we welcome new dealers and rental companies on to the platform, we will grow the number of available cars, which currently stands at 40,000 units across 50 brands.”
The global car subscription market, which was valued at $3.6 billion in 2019, is projected to reach more than $12bn by 2027, at an annual growth rate of 23.1 per cent, according to research and advisory company Allied Market Research.
In Europe and the US, subscriptions will contribute between $30bn and $40bn by 2030, accounting for up to 15 per cent of total new car sales, according to Boston Consulting Group.
Founded in 2018, Invygo is present in Saudi Arabia and the UAE – the Arab world’s biggest economies. It is an app-based service that allows people to choose, drive and swap cars at the tap of a button.
Providing consumers with affordable and flexible access to cars, the company has partnered with several car distributors and rental companies including Enterprise, National Car Rental and Shift in the UAE and Saudi Arabia.
“Invygo has a phenomenal track record and has achieved consistent capital-efficient growth reflective of their leadership position,” said Salaal Hasan, associate director for venture capital at JS Group.
Invygo, which currently employs 25 people, aims to continue hiring as it expands across the region.
“The growth of our business means we are always looking for best-in-class talent,” said Pulkit Ganjoo, co-founder and director of data science at Invygo.
“Our product teams are accelerating the deployment of artificial intelligence and machine intelligence capabilities.
"By nurturing in-region technical talent, we are focused on building a world-class product that is shaped by a deep understanding of local market needs.”