Car subscription start-up company Invygo, which is based in Dubai, has announced that it has successfully raised as much as $1m within a seed round led by VC firm Class 5 Global, which is based in San Francisco in the US.
Equitrust, the venture arm of Choueiri Group; Gulf Islamic Investments; the CEO and founder of Shedul, William Zeqiri; and Karios K50, which is based in New York, also participated in the round.
The start-up firm, which was part of the inaugural cohort of Misk500, was able to raise $275,000 in its initial funding round in November 2018.
Invygo, which was founded by Pulkit Ganjoo and Eslam Hussein last year, promises to be an alternative to leasing or car ownership by enabling customers in the United Arab Emirates to use a mobile app to choose a vehicle for the cost of a monthly fee.
Invygo offers vehicles that are verified by legitimate dealers and that also come with full car insurance, which is a legal necessity in the UAE and helps to protect drivers from financial repercussions in the event of road accidents.
Routine maintenance is also handled by Invygo, including the likes of routine inspections and oil changes.
Customers are able to request a motor vehicle just by making their choice, uploading their driver’s licence and having the documents signed, all of which can be done via the app.
The car will then be delivered to their requested location at no extra charge.
The start-up firm says that with no hidden fees, debt or long-time commitments associated with the service, customers just make one payment, and cars can be returned or serviced just by tapping a button.
Users of Invygo can also choose to change or upgrade their vehicles at any time.
The Invygo website says that a 2018 Kia Sportage is being offered to customers for a monthly fee of AED2,200.
Invygo says that its intention is to attract customers who want an alternative to the standard car ownership and leasing choices in the market in the UAE and who are seeking a customer experience of a very high quality.
The service is not necessarily cheaper than the alternatives, but provides customers with flexibility by being able to upgrade or change their vehicle whenever they wish, having car insurance and other services provided, and removing down payments.
Nearly 1,000 car subscriptions have been served to date, according to the start-up firm’s website, with as many as seven car brands offered as options in the UAE.
The company is also hoping to be able to use the new investment to expand operations to Bahrain, Saudi Arabia and other markets in the GCC.
According to Hussein, the new funding will allow the company to go forward and expand its platform.
Hussein adds that millennials in the Middle East want the latest things as soon as possible, and that Invygo can meet that demand within the automotive market.