Invygo, a car subscription startup app based in Dubai and Riyadh, has received $1.9 million, raising its total capital earned to $4.2 million as it plans to expand regionally and improve its technology platform.
The pre-Series A round funding included investors from Signal Peak Ventures, JS Group, Wealth Well, Knollwood Investment Advisory, Saudi Arabia’s Dr. Faisal Al Kadi, Mr. Khalid AlKhudairi, Mr. Ahmed Alola, and some other investors.
Since 2018, Invygo has been exploring the Middle East’s car subscription ecosystem, reshaping the market, and improving customer experiences. The platform offers over 40,000 cars for rent from 50 different brands at a reasonable price to its users.
Invygo’s collaboration with enterprises like Al Jomeih, Budget Saudi and Al Jabr in Saudi Arabia, as well as National Car Rental Al Tayer, Diamondlease, Al Habtoor, Shift and A W Rostamani in the UAE gave its users a massive collection of cars including Toyota, Nissa, Ford, BMW, Range Rover and Mercedes-Benz.
“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 monetize their inventory while creating a generational shift in how people around the region access cars.”
Invygo offers deposit-free all-inclusive services like free maintenance, servicing, insurance, and complimentary delivery and pick-up with subscription durations starting at 30 days. The company’s partnership with Careem has provided Saudi youth with access to more than 100 cheap, unlimited-mileage cars in five models.
The COVID-19 outbreak boosted the company’s revenue as people avoided public transportation due to social distance norms and looked out for cheaper ways to use cars independently.
According to reports, the worldwide car subscription market, which was worth $3.6 billion in 2019, is expected to increase to more than $12 billion by 2027, with a 23.1 percent annual growth rate.
Related: Dubai-based Swvl to list on Nasdaq through $1.5bn SPAC