In a move set to propel its growth in the Middle East’s rapidly evolving mobility sector, Saudi Arabia-based car subscription startup invygo has secured an $8 million Series A extension. This round of funding, led by STV’s recently launched NICE Fund, includes participation from prominent existing investors such as Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5. With a focus on expanding its innovative "Subscribe to Own" (STO) model, the company is now on the verge of profitability, expected by the end of fiscal year 2024.

STV’s Role and the Funding Milestone

The $8 million infusion marks a significant milestone for invygo, particularly because it follows a 24-month period in which the company avoided raising external capital. This decision reflects invygo's strong commitment to financial sustainability and disciplined growth. STV’s NICE Fund, which offers non-dilutive capital through an equity-based structure, plays a key role in this round, underscoring the confidence investors have in the startup’s business model.

Eslam Hussein, co-founder and CEO of invygo, expressed excitement about the partnership with STV. "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," Hussein said.

A Unique Mobility Model for the Middle East

Founded in 2019 in the UAE by Hussein and Pulkit Ganjoo, invygo offers an app-based service that allows users to choose, drive, swap, and even own cars through a subscription model. The startup operates in key Middle Eastern markets, including Saudi Arabia, the UAE, and Qatar. As invygo surpasses $100 million in annualized Gross Merchandise Value (GMV), it is clear that the company’s model has struck a chord with regional consumers.

One of the key innovations driving invygo’s success is its "Subscribe to Own" (STO) model, which has proven particularly effective in Saudi Arabia, where traditional car financing has historically been difficult to access. Through this model, invygo offers a seamless and affordable route to car ownership via a mobile app, empowering both Saudi nationals and residents to access vehicles without the complexities of traditional loans or lease agreements.

Focus on Financial Sustainability and Growth

Despite the challenges faced by many startups in scaling while maintaining a positive cash flow, invygo has distinguished itself by focusing on strong unit economics and maximizing customer lifetime value (LTV). The company has demonstrated consistent growth by leveraging data to optimize vehicle utilization and pricing dynamics. This approach has allowed invygo to build a scalable ecosystem that meets customer demand while ensuring financial sustainability.

Pulkit Ganjoo, co-founder and Chief Data Officer at invygo, highlighted the importance of data-driven decision-making in the company’s success. "We’ve built a product ecosystem that scales efficiently, ensuring optimal vehicle utilization and supporting our strong unit economics as we move towards profitability," Ganjoo stated. By employing this strategy, invygo has been able to maintain a clear path toward profitability, which it anticipates achieving by the end of 2024.

STO Model Driving Expansion in Saudi Arabia

Invygo’s success in Saudi Arabia has been particularly pronounced, thanks to the STO model. With many consumers facing challenges in securing traditional financing for car purchases, invygo has positioned itself as a key player in the market by offering an alternative that simplifies the process of car ownership. Ihsan Jawad, General Partner at STV, noted that invygo is revolutionizing access to mobility in the region.

"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," Jawad said. This model has not only accelerated invygo’s growth but has also made a significant impact on the lives of customers, many of whom are using cars to unlock new personal and professional opportunities.

Positioning for Future Growth

As invygo looks ahead, the company’s leadership remains committed to expanding its STO model across the Middle East and beyond. With a strong emphasis on customer experience and financial sustainability, invygo is well-positioned to capitalize on the growing demand for flexible and affordable mobility solutions in the region. The startup’s success aligns with broader trends in the Middle East, particularly in Saudi Arabia, where rapid technological adoption is reshaping industries and driving economic growth.

Looking ahead, invygo is poised to continue reshaping the mobility landscape in the Middle East, with plans to expand its offerings and customer base. As it approaches profitability, the company’s innovative approach to car ownership, combined with a data-driven focus on efficiency and customer satisfaction, sets the stage for future success.

Invygo’s $8 million Series A extension signals a new chapter for the Middle East’s largest car subscription platform. By focusing on sustainable growth, strong unit economics, and an innovative "Subscribe to Own" model, the company has established itself as a leader in the region’s mobility sector. With the continued support of key investors and a clear path to profitability, invygo is well-positioned to further disrupt the traditional car ownership model, offering consumers a more flexible, affordable, and accessible way to own vehicles in the Middle East.