Speero, a Riyadh-based online car parts seller, raised $1.8 million to expand its range and enter into new markets.
The early stage (pre-Series A) funding round was led by Dubai-based venture capital firms Nuwa Capital and Eq2 Ventures. It also included participation from Saudi and international investors, including Jameel Investment Management Company, better known as Jimco, Impact46, Mountain Partners and Access Bridge.
“We are excited to welcome our new investors, all of whom are renowned for partnering with and supporting the growth of the start-up ecosystem,” said Abdullah Bin Shamlan, co-founder and managing director of Speero.
Founded in 2017, Speero is an online platform for the automotive after-sales market.
It allows users to buy new and used automotive spare parts through its website and mobile apps, which are then delivered to them. Users can submit details for the parts they want through the site and sellers will provide quotes.
“The automotive after-sales value chain has not evolved in this digital era. Vendors seek solutions that will help create access to growth opportunities while customers want an affordable and digital-first approach to their vehicle ownership experience. With Speero, we are building just that,” said Mr Shamlan.
The new funding will allow Speero to become a “one-stop destination for services across the automotive after-sales ecosystem”, the company said.
Saudi Arabia’s car parts market for commercial and passenger vehicles is set to grow to $9.8 billion by next year, said Speero, which is used by more than 1,000 partners and service providers, with more than 750,000 registered customers across the kingdom.
Since its launch, it has generated 3.5 million instant quotations for spare parts. However, the company did not disclose how many quotations were turned into actual orders.
Speero "is helping drive digitisation, efficiency and transparency in a space that is remained largely fragmented and opaque ... we are excited to be joining [them] on their journey”, said Sarah Abu Risheh, partner at Nuwa Capital.
Through Speero, customers can buy parts for several leading brands such as Toyota, Nissan, BMW, Audi and Honda.
“Jimco's participation in Speero's latest funding round is an example of our commitment to invest in early stage and breakthrough technology. We are excited to contribute to this critical stage of Speero's growth, which will help drive the digitisation of Saudi Arabia’s mobility sector,” said Jimco, the Abdul Latif Jameel family's global investment arm.