The top car subscription service in the Middle East, Invygo, revealed that it has raised $8 million in its most recent round of funding through a Series A extension. STV’s recently established NICE Fund, which offers non-dilutive capital through a unique equity-based structure, as well as current investors Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5, contributed the funds.
Invygo has strategically concentrated on attaining industry-leading unit economics and optimizing customer lifetime value (LTV) since its annualized GMV has surpassed $100 million. The success of its creative and ground-breaking “Subscribe to Own” (STO) model, especially in Saudi Arabia, has been a major factor in its growth. By the end of FY 2024, the company is anticipated to be profitable.
Eslam Hussein, co-founder and CEO of invygo, said: “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 continues to forge a distinct route in the quickly changing mobility industry by questioning both traditional funding models and car ownership, with a particular emphasis on growing its “Subscribe to Own” (STO) offering.
Ihsan Jawad, General Partner at STV, said: “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.”
Invygo’s STO model has helped the company grow more quickly, particularly in Saudi Arabia, where it has historically been difficult to get financing for car ownership. Subscribe to Own has made it easier and more affordable for Saudi citizens and residents to move around, and many are taking advantage of this to open up new opportunities.
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 utilisation and supporting our strong unit economics as we move towards profitability.”
More than $22 million has been raised by local and international investors since Invygo was founded in 2019. The Series A extension for Invygo ended in June 2024. With a creative approach to car ownership and industry-leading unit economics, the company is still committed to creating financially viable operations.
