Invygo, a car subscription platform in the Middle East, announced the closure of an $8 million Series A extension funding round.
The latest investment was led by STV’s newly launched NICE Fund, which offers non-dilutive capital through an innovative equity-based structure, alongside participation from existing investors including Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5.
Having surpassed $100 million in annualized Gross Merchandise Value (GMV), invygo has strategically concentrated on achieving industry-leading unit economics and maximizing customer lifetime value (LTV).
The company’s growth has been significantly driven by its pioneering “Subscribe to Own” (STO) model, particularly gaining traction in Saudi Arabia. Invygo is now on track to reach profitability by the end of fiscal year 2024.
Eslam Hussein, co-founder and CEO of invygo, stated, “We are thrilled to welcome STV as a key partner in our journey. With the continued trust and support of our existing investors, we’re positioned to unlock new growth opportunities while keeping profitability firmly within our sights. This round comes after 24 months without external capital, a testament to our commitment to building a financially sustainable business that is reshaping mobility. Our focus remains on driving meaningful impact in customer experience and the broader global mobility landscape from the Middle East.”
Invygo is challenging traditional car ownership and funding models, carving a unique path in the evolving mobility sector with a particular emphasis on expanding its STO offering. The STO model has been instrumental in accelerating the company’s growth in Saudi Arabia, where obtaining financing for car ownership has historically been difficult. Through Subscribe to Own, residents and nationals of Saudi Arabia now have an accessible and affordable pathway to vehicle ownership, enabling greater mobility and new opportunities.
Ihsan Jawad, General Partner at STV, commented, “We are excited to back invygo as one of our early deals in STV’s newly launched NICE Fund. Saudi Arabia’s economic growth is being driven by rapid technological adoption, and invygo is leading the charge in redefining access to mobility. invygo’s ‘Subscribe to Own’ model has uniquely empowered individuals across Saudi Arabia, providing a seamless and accessible path to vehicle ownership through their mobile devices. We are excited to support invygo as they scale further.”
Pulkit Ganjoo, co-founder and Chief Data Officer at invygo, added, “We’ve seen firsthand how empowering access to mobility can be. With invygo, access to mobility and car ownership has been simplified similar to how music, movies, and more have reached new audiences through subscriptions. By using data to understand supply, pricing dynamics, and customer preferences, we’ve built a product ecosystem that scales efficiently, ensuring optimal vehicle utilization and supporting our strong unit economics as we move toward profitability.”
Since its inception in 2019, invygo has raised over $22 million from both regional and global investors. The Series A extension, which closed in June 2024, underscores the company’s commitment to building financially sustainable operations underpinned by robust unit economics and an innovative approach to car ownership.
PEVCJournal.com