Invygo Raises $10 Million For Its Car Subscription Service
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UAE and Saudi Arabia-based startup Invygo has raised $10 million in series A funding led by MEVP as it further develops its long-term car subscription service. The startup, which was founded by Eslam Ahmed Hussein and Pulkit Ganjoo in 2019 so far has raised $14.3 million.
It counts Al Rajhi Partners, Arab Bank, Amana Capital, and Palm Drive Capital as its main investors. It also has backing from Signal Peak Ventures and Knollwood Investment Advisory, who have participated in the latest round.
“We’ve split the full payment of the car into three. Normally, you have a massive down payment of around 20% and then your monthly instalments with no way to get out of that commitment. Our starting fee is around 5%, and you can cancel your plan at any time without any penalty,” Ganjoo said.
Invygo offers three kinds of rental services – one is a short-term rental service that allows one to one to nine months. The other service is the long-term leasing option which allows users to rent a car for between a year and three years. There is also a subscription to own model, which offers brand new or semi-used cars on a 2–3-year rental period with a start fee that’s much lower than a traditional down payment.
Users for a short-term rental can go to its website and look for available cars and book a rental. Users have access to all kinds of information like model number, year of make, and km clocked by the vehicle in question. Users can also filter parameters like car type, fuel type, transmission type and color.
Invygo offers doorstep delivery, replacement of car, maintenance, regular insurance, and a 24×7 helpline. Invygo makes money by taking a cut of the subscription. It has around 200 cars in Saudi Arabia on its service and 100 cars in the UAE.
Questions & Answers
Q.How does Invygo's financial model for car access differ from traditional car financing?
How does Invygo's financial model for car access differ from traditional car financing?
Invygo splits the car's full payment into three, with a starting fee around 5%. This contrasts with traditional models that typically require a large down payment of around 20% and commitment to monthly instalments.
Q.What types of car rental services does Invygo provide to its customers?
What types of car rental services does Invygo provide to its customers?
Invygo offers a short-term rental service for one to nine months and a long-term leasing option for one to three years. They also have a 'subscription to own' model for new or semi-used cars over a two to three-year period.
Q.Which regions currently have Invygo's car subscription service available, and how many cars are in each location?
Which regions currently have Invygo's car subscription service available, and how many cars are in each location?
Invygo's service is available in Saudi Arabia, where it has around 200 cars, and in the UAE, where it has 100 cars. The company is based in both these regions.
Q.What benefits are included for users who subscribe to Invygo's car service?
What benefits are included for users who subscribe to Invygo's car service?
Users receive benefits such as doorstep delivery, car replacement, maintenance, and regular insurance. A 24x7 helpline is also provided for support, and users can cancel their plan at any time without penalty.
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