Riyadh-based automotive parts platform Speero has closed $1.8 million in a pre-Series A round, co-led by Nuwa Capital and EQ2 Ventures, it announced today. The deal also includes participation from JIMCO (Jameel Investment Management Company), Impact46, Mountain Partners, and Access Bridge Ventures.
Founded in 2017 by Abdullah Bin Shamlan and Ameen Mahfouz, Speero enables customers to order new or used auto parts. It currently has over half a million parts listed on the platform from leading brands including Toyota, Nissan, BMW, Audi, Honda, and many more. The users also have the option to request quotations for parts that are not available on Speero. The startup claims to have served over 3.5 million quotations to date.
Speero also operates a SaaS-enabled marketplace for businesses that enables workshops to procure inventory and manage different functions of the business, including invoicing, administration, and business development. The offering also comes with insights and analytics for the businesses. The suppliers of auto parts can use the offering for business development and demand generation.
In a statement, the startup said that its business offering is already used by over 1,000 partners and service providers across the Kingdom, which includes leaqding repaird shops likes Mohrkey, Geoshield and h2o and spare parts suppliers AutoHub and Abdul Latif Jameel.
In addition to serving end-users and workshops, Speero has also partnered with insurance companies who use its platform and Speero-certified repair shops for purchasing spare parts, “With parts constituting 60 to 70% of the cost borne by insurance companies, the transparency and credibility offered by Speero has helped partners and insurance companies working with them to reduce purchasing costs by 25 percent.”
With the latest funds, Speero aims to become the one-stop destination for for services across the automotive after-sales ecosystem with its offering including spare parts, repairs, and insurance.
Abdullah Bin Shamlan, co-founder and Managing Director at Speero, said, “The automotive after-sales value chain hasn’t evolved in this digital era. Vendors seek solutions that will help create access to growth opportunities, while customers today want a convenient, affordable and digital first approach to their vehicle ownership experience. With Speero we are building just that.”
“The next stage of our growth will be focused on strengthening our market-leading position and realise the untapped potential of this multi-billion-dollar sector. As we evolve the after-sales experience with a made in Saudi Arabia, Software-as-a-Service (SaaS) enabled marketplace, together with our investors and industry partners, we are well positioned to transform the sector through innovative technology,” added Abdullah.
Sarah Abu Risheh, Partner at Nuwa Capital, said, “The auto industry in Saudi Arabia is a wide and complex market, with the kingdom remaining the fifth importer of auto parts in the world. Saudi Arabia is at the forefront of a regional movement towards cashless transactions, optimized regulation, streamlined service and increased overall transparency. Speero is well positioned to spearhead the transformation in its industry.”
Speero plans to use the latest funds to start its own ‘fully-automated’ warehouses for partners in Riyadh and Jeddah. The spare parts suppliers will be able to use the facilities at no cost to optimize delivery experience for Speero’s customers. It will allow Speero to offer 24-hour delivery to customers in these two cities. A part of the funds will also be used to expand Speero’s team.