CAIRO: Car subscription app invygo has raised $10 million in a series A funding round led by MEVP to strengthen its presence in Saudi Arabia and the UAE.
Founded in 2019, invygo is the largest automotive subscription service in the Middle East, allowing users to choose, drive, swap, and own cars through its mobile app.
CEO and co-founder of invygo, Eslam Hussein, told Arab News that the company will be able to strengthen its presence in the Kingdom with its newly released ‘subscribe-to-own’ service.
“We’ve seen huge demand in particular for our subscribe-to-own offering in the Kingdom, which is 25 percent of our business there and growing fast.
"For customers who do not have strong credit scores or access to car financing, we are able to give them an affordable route to car ownership,” Hussein told Arab News
He explained that Saudi users will be able to subscribe to the new offering for either 24 or 36 months and pay a final amount after that period to take full ownership of the vehicle.
“At invygo we're pushing the boundaries of auto-financing with our solutions and partners, to enable financial inclusion at scale. History has shown us how access to a vehicle can create immeasurable economic opportunities, and this is what we want to achieve for Saudi Arabia,” he added.
The company is betting big on its financial solutions in the Kingdom and the UAE as it anticipates the service to contribute to 50 percent of its overall business operations.
“In Saudi Arabia in particular, we anticipate subscribe-to-own will become 70 percent of our business there, as people want to own an asset and have it in their name,” Hussein added.
Following its investment, invygo aims to create over 100 jobs across Saudi Arabia and the UAE in the next 12 to 18 months, as well as investing in its product development.
The company managed to maintain a 4x annual growth since its inception and is expecting to reach 5x growth rate in 2023, Hussein stated.
Hussein aims to take invygo beyond the Middle East, as the company plans to offer its services in underserved markets like Egypt, Turkey, and Pakistan.
“We will continue to build on our mission to solve financial inclusion and mobility challenges, to help people get access to cars easily,” he stated.
The global car subscription market is set to reach $9.8 billion by 2027. The Middle East and North Africa region has already witnessed large investments and acquisitions in the mobility tech sector.
The company raised a total of $14.6 million in funding making it one of the top most funding mobility tech startups in the region.
