Dubai-based car subscription platform Invygo has raised $1 million in a Pre-Series A round from EQ2 Ventures, Class 5 Global and 500 Startups. The investment comes less than six months after the startup raised $1 million in a seed round, taking the total amount of money raised by them to over $2 million.
Founded in 2018 by Eslam Hussein and Pulkit Ganjoo, Invygo serves as an alternative to owning or leasing a car by allowing users in the United Arab Emirates to get a car of their choice for a monthly subscription fee, through its mobile app.
The cars offered on its platform are dealership verified and come with full insurance and routine maintenance including oil changes and inspections are handled by Invygo. We quickly scanned through the cars available on the platform and they start from AED 1,150 a month and go up to AED 2,250 a month. The minimum commitment period is one month so the users can change their car every month.
A car can be requested using Invygo’s website and app and it gets delivered at the user’s doorstep (without any additional fee). They’re required to submit their license and sign all the documents online while making the request.
The startup in a statement said that it aims to attract users who are looking for a high-quality customer experience and an alternative to the traditional car ownership and leasing options available in the market.
Invygo claims to have tripled its customer base since raising its seed round in November last year. According to the statement, Invygo has also increased its dealership partners from two to seven and now has 12 car brands on the platform.
Eslam Hussein, the co-founder and CEO of Invygo, commenting on the ocassion, said, “We are incredibly pleased to see further confidence from our investors with this latest funding round especially in the current climate. Our teams have received ongoing feedback from our customers stating they have seen real value of the subscription model, over owning a car. With many people working from home and spending less time driving to and from work, our customers have been able to easily pause their subscription, swap to a less expensive car, or save money by choosing a lower mileage option.”
“We’re happy that our business model has been able to help people at this time, who otherwise would have been tied into monthly loan payments even though their life circumstances had changed,” he added.
Patrick Thiriet, CEO of Equitrust, said, “The Coronavirus crisis has now affected almost every part of our world; for many years to come, it will change the way we all move and commute. Invygo’s value proposition looks even more relevant in this post-Covid-19 world, with consumers still expecting to drive a car of their choice, but without the visibility to commit for 3 or 5 years.”
“Eslam and Pulkit are gathering an A-star team to solve this issue, and can scale their tech platform across numerous markets where consumers are facing frictions to traditional car ownership. We look forward to continuing helping them in this journey,” he added.
Invygo plans to use the latest investment to grow its business further by investing in technology and expanding into new customer segments.