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App-based car subscription startup raises US$1mn in funding

This flexible car sharing alternative aims to attract users who are looking for an alternative to the traditional car ownership and leasing options available in the market. (Image source: ????? ????????/Pixabay)

Invygo, Dubai-based startup, has raised US$1mn in funding, as it looks to accelerate its expansion plans across the Middle East

The app-based car subscription company plans to use the funds to grow the business further by invest in technology and expanding into new customer segments.

This investment is part of the ?Pre-Series A? funding round led by EQ2 ventures, Class 5 Global, and 500 Startups, who are confident that Invygo has cornered the market by providing customers with greater flexibility in terms of finance options, choice in vehicles and excellent customer service model.

The news follows the latest funding injection from the Q4 2019, and since then Invygo has grown substantially by tripling the customer number base, increasing its dealership partners from two to seven. Furthermore, it has 12 car brands on the platform offering greater choice for customers.

Eslam Hussein, CEO and co-founder, commented, ?Our teams have received ongoing feedback from our customers stating they have seen real value of the subscription model, over owning a car. With many people working from home and spending less time driving to and from work, our customers have been able to easily pause their subscription, swap to a less expensive car, or save money by choosing a lower mileage option.?

Patrick Thiriet, CEO of Equitrust, added, ?The coronavirus crisis has now affected almost every part of our world; for many years to come, it will change the way we all move and commute.?

Customers can choose a car, upload their license and sign their documents all from within the app and have the car delivered for free to their home within hours.

With a monthly subscription service, no long-term commitment or hidden fees involved, customers can request servicing or return their car with the tap of a button whenever they need.