KSA-based Telgani raises $2.5M in Pre-Series A
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Riyadh-based car rental & mobility solution Telgani has successfully raised $2.5M (9.37M SAR) in its latest funding round. The Pre-Series A round was led by Impact46 with participation from Nomw Capital “private equity” and value-added investors.
Founded in 2018, Telgani offers users access to a wide range of car rental agencies across the kingdom, handling the cycle of renting a car through a streamlined experience, providing flexible on-demand booking and rental plans. Since the launch of the platform, Telgani has an agreements partnerships with more than 50 local and international car rental companies with +500 branches across the kingdom, covering more than 44 cities and 13 airports in Saudi, and partnering with leading car rentals companies such as Budget, Theeb, Hertz, Sixt, and Key Car Rental.
Observing a 216% YoY growth in capital deployed, the Transport & Logistics (T&L) industry in MENA has been a high target for global and regional VC investment. The Top 3 most-funded geographies in MENA all observed stellar growth of funding in T&L, with Egypt growing by 258%YoY, UAE by 163%YoY, and KSA by 204%YoY; collectively raising more than 92% of all investment in T&L across MENA by Q3 2021. Major multi-million dollar rounds drove impeccable capital growth this year, with UAE and Egypt-based startups including Lyve Global, Trukkin, Trella, and Bosta raising all top 10 rounds by the third quarter of the year.
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Telgani is in a constant state of scaling its offerings. Being the first in the region to offer car delivery services in 12 cities around the Kingdom. Along with the domestic tourism movement, Telgani introduced a drop-off between cities enabling clients to enjoy different destinations in Saudi while being able to drop off their rental car at their last destination. While Telgani is playing a key role within the industry, and with its recent expansion, the platform has +230,000 active users and more than 350,000 rental days on the platform since 2018. “Telgani has been fueling the mobility industry with an accessible yet easy approach of renting cars in KSA. Along with governmental and institution support, Telgani is making their mark in the mobility sector with their initiatives. In the last year, Telgani has launched multiple projects including “Telgani Quick”, the first self-service device for rental cars allowing users to rent cars with 3 steps, furthermore Telgani is working on its upcoming exceptional projects.” Added Ali Alfehaid, Co-founder of Telgani.
The platform offers a wide variety of mobility solutions, with the flexibility of renting cars on a daily/monthly/yearly basis. Although the mobility sector has been hit hard by Covid-19 in early 2020, Telgani has managed to tailor its offering by supporting the shift of individual needs. This has reflected the incredible growth of sales by more than 4X in 2020 compared to 2019. Almikanzy, Founder of Telgani highlighted“With the recent fund and as the platform seeks to keep pace with Saudi Arabia 2030 Vision. Telgani is on the go to enhance its technology, further develop digital solutions, and introduce new products accommodating the market needs and eyeing for expansion.”
The startup will channel its newly acquired funds to support its platform and further expand its go-to-market to cover the wider geographical areas within the region. In light of this platform-scaling investment, Abdulrahman Al-Modaimeegh Managing partner at Impact46 concluded “Telgani team agility has demonstrated strong performance over the last years. We’re delighted to further support an innovative and forward-facing platform. Ensuring an unrivaled customer experience, car rentals & travelers can now avail of the local most extensive application for car rental solution.”
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