Dubai-based Udrive has closed a $5 million fundraising round as the mobility start-up expands its fleet ahead of Expo 2020 where founder Hasib Khan revealed they will look to capitalise on the influx of tourists in the UAE.
The six-month Expo event will kick off in October after being postponed a year to stem the spread of Covid-19, and the event is expected to generate 25 million visits.
He said: “With Expo 2020 around the corner, this mentality and temporary use of assets creates additional opportunities in an already large total addressable market for Udrive.”
Hasib Khan, founder of Udrive.
The app-based pay-per-minute car rental service announced the latest investment round on Tuesday, which was led by three venture capitalists and prominent regional business leaders.
This new group of investors includes Cherif Sleiman of Infoblox and Asif Keshodia, former CFO of Souq.com which has since been acquired by Amazon.
“The UAE Government recognises that mobility is a fundamental pillar of the economy and has prioritised it for all citizens, residents and visitors,” Keshodia said. “By advancing the car-sharing industry in the country, Udrive is playing a key role in furthering the government’s mobility goals.”
Udrive plans to use the funding to enhance its platform’s data analytics capabilities to improve the overall customer experience.
The company will also double its fleet over the next three months, with a 500-percent revenue growth target in the next 12 months. Udrive is set to expand across the UAE and is looking to enter the market in Saudi Arabia.
Within six months, Udrive also plans to expand throughout the Middle East, North Africa and Turkey.
“As people return to work, we’re once again seeing an increased need for mobility,” Khan said. “Furthermore, the ability to avoid large capital costs associated with owning a vehicle while still having the convenience, and the ability to enjoy the driving experience is especially attractive to ex-pats, which make up a large portion of the population in the UAE and broader GCC region.”
Managing director Nicholas Watson accredited the company’s technology stack and SaaS platform for Udrive’s quick growth.
Watson said: “With our new strategic investors, we now have unfettered access to invaluable experience in regional market dynamics, FinTech, and mobility — a perfect combination for where we are heading.”
Within six months, Udrive also plans to expand throughout the Middle East, North Africa and Turkey.
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