Speero, a digital automotive services start-up based in Riyadh, has secured close to $2 million in pre-series A funding.
The funding round, co-led by Eq2 Ventures and Nuwa Capital worth $1.8m (SAR 6.75m) will be used to strengthen Speero’s logistics infrastructure through creating automated warehouses.
Saudi and international investors including Jameel Investment Management Company (JIMCO), Impact 46, Access Bridge Ventures and Mountain Partners all contributed to the new funding round.
Speero is an online-based business for automotive after-sales solutions that allows providers to digitalise transactions and provides online access for customers. Speero gives providers the ability to buy parts for brands such as Toyota, Nissan, BMW, Audi and Honda.
“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. The automotive after-sales value chain hasn’t evolved in this digital era,” said co-founder and managing director at Speero, Abdullah Bin Shamlan.
“The next stage of our growth will be focused on strengthening our market-leading position and realise the untapped potential of this multi-billion-dollar sector.”
The automotive components sector for commercial and passenger vehicles in Saudi Arabia is projected to grow to $10.15bn by the end of 2023. Speero’s digital presence within the industry aligns with the Crown Prince’s Vision 2030 goal of growing non-cash transactions to 70 percent.
As Speero embarks on this new funding round, the company looks to continue its journey towards establishing the region’s first Software-as-a-service (SaaS) enabled business-to-business-to-consumer marketplace.
Abdullah Bin Shamlan and Ameen Mahfouz of Speero.
Partner at Nuwa Capital, Sarah Abu Risheh commented: “Through its SaaS platform, the company is helping drive digitisation, efficiency, and transparency in a space that’s remained largely fragmented and opaque, and we’re excited to be joining Abdullah and Ameen on their journey.”
Additionally, this funding round will aid Speero’s creation of fully automated warehouses called cloud warehouses, which will enable partners in Riyadh and Jeddah to set up free storage and enhance services.
A spokesperson from JIMCO, the Jameel family’s global investment arm, stated: “JIMCO’s participation in Speero’s latest funding round is an example of our commitment to invest in early-stage and breakthrough technologies. We are excited to contribute to this critical stage of Speero’s growth, which will help drive the digitalisation of Saudi’s mobility sector.”
Speero has announced its intention to fill key leadership positions within the company in the upcoming months.
Brands accessible on the Speero application include suppliers AutoHub and Abdul Latif Jameel Motors; repair shops Mohrkey, Geoshield and h20; and insurance providers Salama Insurance and Chubb Insurance.
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