Riyadh-based roadside assistance startup Morni has raised $9.1 million in a Series B round led by Saudi investment firm G Square Investments, it announced today. The round also included participation of some other investors. Morni has previously raised $1.1 million from Raed Ventures and 500 Startups in 2016.
Its web and mobile-based platform offers towing and roadside assistance solutions to individuals and corporates. The solutions are available as on-demand and in form of subscriptions. Launched in 2015, Morni claims to have provided services to over 600,000 customers in Saudi to date and says that it has 490,000 annual subscribers. The startup also has over 2000 insurance and car rental companies using its services.
The annual subscription costs about $50 (SAR 200) which allows customers to receive some of its free, for a limited number of times.
In addition to towing, the startup also offers tire, battery, fuel delivery, and locksmith services. The vehicle owners involved in a car accident can receive full accident solutions; starting from the accident site to completing all the procedures with relevant authorities and then delivering the vehicle to owner’s doorstep. Morni uses an Uber-like marketplace model with its supply of tow trucks coming from partners and freelancers.
It has recently also launched an auction platform where it sells the vehicles involved in different types of accidents.
The Saudi startup said that it plans to use the latest funds to expand its services in more cities of the Kingdom. A part of the funds will be used to grow its debris management services for insurance companies and comprehensive accident solutions for both individuals and corporates.
It said that “it also seeks to introduce new products for the owners of classic and luxury sports vehicles to provide the highest levels of preservation and accommodation through storage areas of over 300 thousand square meters in Riyadh.”
Salman Al-Suhaibani, the founder and former CEO of Morni, said, “This funding will enable the company to continue to lead the vehicle and post-accident services sector, as it will benefit from the expansion of vehicle preservation services, debris management, and support services for vehicle claims. This will contribute to providing more than SAR 3 billion annually from financial waste in the vehicle insurance sector, by providing innovative solutions to deal with vehicle accidents and their claims.”
He left the company as CEO in July this year but apparently still sits on its board.
Bassam Al-Wabel, a partner at G Square Investment Company, said, “We believe that this investment round will help the system grow in an integrated and accelerated manner, which will support the digital economy in the Kingdom to raise the customer’s experience and reduce the circulation of cash. We are working to ensure that the system has an added value to the Saudi economy and is ready for public offering in the coming years.”
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