invygo, a Middle East’s car subscription service, recently announced that it has raised $1.9 million (SAR7.12 million) from new and existing investors. The pre-series A round included participation from Signal Peak Ventures, JS Group, Wealth Well and once again from Knollwood Investment Advisory. This round also had participation from Saudi Arabia’s Dr. Faisal Al Kadi, Khalid AlKhudairi, Ahmed Alola and other leading family offices in the Kingdom.
Providing consumers with affordable and flexible access to cars, invygo partners with the leading automotive distributors and rental companies including Enterprise (Al Jomeih), Budget Saudi and Al Jabr in Saudi Arabia, as well as National Car Rental (Al Tayer), Diamondlease (Al Habtoor), and Shift (A W Rostamani) in the UAE. invygo’s wide network of partners allows consumers access to the world’s leading automobile brands from Toyota, Nissan and Ford to Range Rover, BMW, and Mercedes-Benz.
With over $4.2 million raised till date and 5x growth since April 2020, the continued interest of international and regional investors validates invygo’s business model, while forging the foundations for its next stage of growth. The global car subscription market is expected to grow to $12 billion by 2027 with subscriptions contributing to 15 per cent of all new car sales in the US and Europe by 2030. Subscription services are set to grow the Mena region’s low motorisation rate, where access to cars is traditionally limited due to high down-payments, restrictive financing options, and a high cost of ownership.
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“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. By leveraging innovative technology, invygo is helping dealers and rental companies to monetise their inventory while creating a generational shift in how people around the region access cars,” said Eslam Hussein, co-founder and CEO of invygo.
He continued, “Car subscription services are reimagining the mobility sector in the Middle East as consumers desire a flexible automotive experience, zero financial risks and mitigate the impact of depreciation. As we expand our presence across the UAE and Saudi Arabia, customers will not only have a choice of vehicles but also change cars as they require.”
“As the first-ever car subscription service in MENAPT, invygo has a phenomenal track record and has achieved consistent capital-efficient growth reflective of their leadership position. We are excited to participate in the next stage of invygo’s journey, partnering with world-class founders as invygo advances its vision to disrupt the traditional car ownership model in the region” said Salaal Hasan, Associate Director – Venture Capital, JS Group.
Buoyed by resurgent economies, automotive subscription services in the UAE and KSA continue to see high demand, as traditional ownership models face a decline. Enabled by world-class technology, invygo’s platform provides customers with access to 50 brands and 40,000 cars that are delivered at their doorstep.
invygo will build new partnerships with dealers, and car rental companies, while also expanding its engineering talent, to enable the development of future-centric skills amongst the region’s engineers.
“The growth trajectory we have experienced has been inspiring and our product teams are accelerating the deployment of artificial intelligence and machine intelligence capabilities to transform our customer experience. 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,” said Pulkit Ganjoo, co-founder and Director of Data Science at invygo.
invygo’s previous investors include 500 Startups, Eq2 Ventures, Class 5 Global, Gulf Islamic Investment and Kairos K50. The invygo application is available for download on the Android and iOS app stores.