To challenge the conventional model of personal tech device ownership, Zension Technologies has raised $30 million in a Series A round led by Wa’ed Ventures, the $500 million venture capital arm fully owned by Saudi Aramco. Japanese Sumitomo Corporation and Dubai-based Global Ventures have also participated.
The 100-year-old Japanese global conglomerate Sumitomo Corporation is making its first significant investment in the GCC.
Zension, which has its headquarters in Riyadh, is the top supplier of protection, extended warranties, and guaranteed buy-back services for consumer electronics and mobile devices connected to major retailers, telcos, and OEMs that serve the Saudi and UAE markets. Through its new vertical Zaam, Zension will provide customers with a new way to purchase, own, and upgrade their devices with the help of the additional funding.
With five years of data and analytics on consumer behavior, Zension, which entered the market in 2018, has a better understanding of when people are most likely to upgrade, which models they are likely to purchase, and which models are most likely to require repairs.
Seeing that sales of tech hardware are increasing quickly, that upgrades are happening frequently, and that there isn’t much competition in the market, Zension has found a niche in the local consumer market to provide subscription services for personal tech hardware, including laptops, wearables, smartphones, headphones, and more. Customers all over the world are quickly embracing subscription models for everything from entertainment to travel, taking advantage of the increased product selection, flexibility, and lack of expensive contracts.
In contrast to traditional installment or buy now, pay later plans, Zension offers personal tech users the opportunity to upgrade and try out new or different models, switch frequently, and receive free repairs with Zaam.
Because every gadget in the Zaam ecosystem is automatically repurposed, the most residual value can be extracted and given to customers in the form of a cheap monthly subscription. In order to precisely predict upgrade behaviors and determine a device’s value at any given stage of its useful life, Zaam’s pricing engine makes use of real-time data and predictive analysis. The distinctive, adaptable subscription model offered by Zaam is driven by a circular ecosystem and big data. Beginning this month, customers will choose to buy their technology from Zaam through extensive, third-party distribution partners throughout the region.
Additionally, Zaam gives customers an environmentally responsible option by encouraging them to switch from the linear economy’s buy-use-dispard single-use strategy to one that maximizes technology lifespan while reaping the financial rewards of a circular model. Customers who choose the Zaam method benefit from the best pricing and flexibility while also feeling good about supporting the circular economy.
E-waste is a major problem in the GCC because the country has the fastest upgrade cycle in the world, with an average of 12–18 months, and Saudi Arabia has the largest device market in the region, selling over 15 million smartphones annually.
Commenting, Khalid Saiduddin, Co-Founder and CEO of Zension Technologies, said: “Our mission at Zension is to drive behaviours that feed into the circular economy by ensuring tech devices can be used for their full, usable life. Smartphones have at least a seven-year lifespan but, on average, are used for just three—and with more than five billion phones being thrown away every year, that’s a big problem to fix. With this new funding, we are elevating our business into a place where we can touch everyday consumers and dramatically shift their way of purchasing and owning their tech devices whilst making the right choice for the environment. Zaam is a win, win for all.”
Anas Algahtani, Acting CEO of Wa’ed Ventures, said: “Investing in sustainability and advancing a circular economy are central to our strategy and our commitment to support the Kingdom’s Vision 2030 targets. Zension’s innovative approach and proven track record in developing scalable solutions that promote environmental responsibility align perfectly with our strategic investment priorities. We are excited to support Zension’s growth as it works to become a household name in the region—empowering customers to make choices that are both environmentally and economically sustainable.”
