UAE-based Udrive, the app-based pay-per-minute car rental service, has announced a $5 million Series B round of funding.
Founded in 2017, the start-up said it has undergone one previous round of funding, in which it raised $1 million and saw investors’ return triple.
It said that the second round underpins its growth in the market, adding that it anticipates a round of Series C funding will take place in another 18 months.
The company said the new capital will allow Udrive to execute its expansion plans, such as increasing the number of premium cars in its fleet - including Mercedes, Audi and Mustang models - as well as expanding its service into Saudi Arabia and other locations in the GCC.
With 73,000 registered users and over 478,000 trips recorded in two years, Udrive said it is the market’s top performing pay-per-minute car rental service.
Hasib Khan, CEO and founder of Udrive, said: “This is an exciting time for both Udrive and potential investors. When we launched just over two years ago, no one anticipated just how successful the concept would be, with many doubting how it would work in this region. We are incredibly proud to have proven those doubters wrong, while simultaneously delivering unprecedented return for our first round of investors.”
In markets such as Dubai, a dense expat population also contributes to the popularity of car-sharing, with many reluctant to make a large investment in owning a car due to regular travel commitments or uncertainty in how long they’ll remain a resident.
“With over 1,300 people using the service in the UAE daily, and our plans to expand both our premium fleet and service across the GCC, we are confident investors will be attracted to the opportunity our Series B round of funding presents,” Hasib added.
Udrive offers rental car services across Dubai, Sharjah, Abu Dhabi and Ajman. The pay-as-you-go service is available 24/7 and starts from 60 fils per minute and AED99 per day, including fuel, public parking and insurance.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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