Invygo, the Middle East’s car subscription pioneer, struck a deal with a clutch of investors led by the UAE-based Middle East Venture Partners (MEVP) to raise $10 million Series A funding.
The other investors include leading financial institutions such as AB Ventures, Al Rajhi Partners, Amana Capital and Palm Drive Capital.
Existing global investors in invygo such as Signal Peak Ventures and Knollwood Investment Advisory also participated in the latest fundraising round of the venture.
Armed with this investment, invygo is expected to double down on its presence in the UAE and Saudi Arabia.
“We are excited to welcome world-class investors on board as we strengthen our leadership position in Saudi Arabia and the UAE, along with plans for regional expansion,” said Eslam Hussein, co-founder and CEO of invygo.
“We offer investors a financially sustainable model which is fit for the current macro-economic environment, and builds confidence in our business,” Hussein said.
The startup will also deploy part of the latest capital infusion to expand to new regional markets that have low vehicle penetration rates, besides investing in its technology.
The venture already has an updated product design underway.
The company plans to hire over 100 employees across the UAE and KSA in the next 12-18 months, who will join a diverse team from over 22 nationalities.
Hussein said invygo’s vision was to enable financial inclusion at scale by creating access to mobility for millions of people in the MENA region.
“Car subscription with invygo provides customers with unparalleled convenience and financial flexibility. Since our launch, invygo has achieved leadership in the car subscription category, with four times average growth annually,” he said.
The MENA region has one of the lowest global motorisation rates because of the lack of financial inclusion.
With high upfront costs and restrictive financing, a large part of the population in the region is limited from owning a vehicle.
“invygo is on a mission to give access to cars to this underserved population, enabling them to fully live up to their potential but also unlocking economic opportunities for the countries as owning a car has proven to be one of the most powerful economic advantages for families over the past 50 years,” Hussein said.
The startup is creating alternative pathways to vehicle ownership and new economic opportunities through car subscription.
Launched in 2019, invygo is the largest car subscription platform in the region, partnering with leading brands and dealers in the UAE and Saudi markets.
“Around the world, access to mobility has proven economic benefits for entire populations. In our region however, financing challenges have limited the possibilities for car ownership and this is a problem that invygo is solving,” Ali Almajthoob, Executive Director at MEVP, said.
“We are excited to back invygo as they reimagine the traditional car ownership model and create opportunities for consumers and the industry across MENA,” he said.
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