Dubai’s Invygo raises $1.9m in pre-series A funding round

Dubai’s app-based car subscription company Invygo has raised $1.9m (SAR7.12m) in a pre-Series A round.

The round included participation from Signal Peak Ventures, JS Group, Wealth Well and Knollwood Investment Advisory. This round also had participation from Saudi Arabia’s Dr. Faisal Al Kadi, Khalid AlKhudairi, Ahmed Alola and other family offices in the kingdom.

Invygo will build new partnerships with dealers, and car rental companies, while also expanding its engineering talent, to develop skills amongst the region’s engineers.

Additionally, Invygo will strengthen efforts to support Saudi Arabia’s gig economy through its partnership with Careem, providing Saudi nationals with affordable and unlimited mileage access to over 100 cars across five models.

Invygo will create new jobs and income streams for young professionals, while also contributing to the kingdom’s economic diversification strategy.

Invygo partners with the automotive distributors and rental companies including Enterprise (Al Jomeih), Budget Saudi and Al Jabr in Saudi Arabia, as well as National Car Rental (Al Tayer), Diamondlease (Al Habtoor), and Shift (A W Rostamani) in the UAE. Its network of partners allows consumers access to automobile brands from Toyota, Nissan and Ford to Range Rover, BMW, and Mercedes-Benz. Invygo has raised over $4.2m raised till date.

The company provides free maintenance, servicing, insurance, and complimentary delivery and pick up.

The global car subscription market is expected to grow to $12bn by 2027 with subscriptions contributing to 15 per cent of all new car sales in the US and Europe by 2030, a statement said.

“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 monetise their inventory, while creating a generational shift in how people around the region access cars,” said Eslam Hussein, co-founder and CEO of invygo.

“Car subscription services are reimagining the mobility sector in the Middle East as consumers desire a flexible automotive experience, zero financial risk and mitigate the impact of depreciation. As we expand our presence across the UAE and Saudi Arabia, customers will not only have a choice of vehicles, but also change cars as they require.”

“As the first-ever car subscription service in MENAPT, Invygo has a phenomenal track record and has achieved consistent capital-efficient growth reflective of their leadership position. We are excited to participate in the next stage of Invygo’s journey, partnering with world-class founders as Invygo advances its vision to disrupt the traditional car ownership model in the region” said Salaal Hasan, associate director – venture capital, JS Group.