STV’s has invested in invygo, the Middle East’s leading car subscription platform, through its novel Non-dilutive Invesment in Callable Equity (NICE) structure. The investment will support invygo’s innovative “Subscribe to Own” model and help the company reach profitability by the end of 2024, as it continues to reshape the region’s automotive market.
We are happy to announce that STV’s NICE Fund I has invested in invygo, the Middle East’s leading car subscription platform, as one of its early deals. This investment is part of invygo’s Series A extension round, which also saw participation from existing investors including Al Rajhi Partners, Arab Bank Ventures, SPV, MEVP, and C5.
Since its inception in 2019, invygo has been transforming the traditional car ownership model by offering accessible and flexible car subscription services. The company has surpassed a $100 million revenue run-rate, a milestone largely driven by the success of its innovative “Subscribe to Own” (STO) model in Saudi Arabia. With this strong growth trajectory, making Saudi Arabia its biggest market, invygo is on track to reach profitability by the end of 2024.
The automotive market in Saudi Arabia is experiencing significant growth, fueled by a youthful population with evolving preferences. Over 70% of the population is under the age of 35, and there’s a growing demand for flexible, subscription-based services that offer convenience and affordability.
invygo’s STO offering provides users with a seamless path to vehicle ownership without the challenges of traditional financing or supply chain constraints. By focusing on strong unit economics and maximizing customer lifetime value, invygo is redefining how people access cars – making mobility as simple as a subscription.
Eslam Hussein, co-founder and CEO of invygo, stated, “We are excited to partner with STV and greatly appreciate the support from the NICE Fund. This non-dilutive, equity-based funding structure not only allows us to scale efficiently while preserving ownership, but it also brings invaluable strategic expertise to our mission.”
As invygo continues to innovate and expand its offerings, we are proud to support their mission to redefine mobility in the Middle East. By harnessing data to optimize vehicle utilization and pricing, invygo has created a scalable model that delivers real value to both customers and partners. We look forward to working closely with the team as they drive toward profitability and reshape the future of mobility in the region.
This 5-year NICE investment, which is based on a revenue-share structure, is one of the first deals out of STV’s NICE Fund I and supports invygo in scaling towards profitability. Due to the light-touch nature of NICE, which does not require any amendments to a company’s shareholders agreement or valuation discussions, the deal was completed in under 11 weeks and was highly time- and cost-effective.
For more information about invygo and their services, visit www.invygo.com.