Telgani announces the closing of its Seed Funding from 500 Startups, Impact46 and SVC
Telgani, the car rental platform startup based in Saudi Arabia, has announced the closing of a six-figure investment for its Seed round. Investors in the round included 500 Startups, Saudi Venture Capital Company, Impact46, and a group of angel investors.
Telgani, which was founded in early 2018, has developed a unique service in the region in which a customer can order a car through the app in a few seconds and get it delivered to their doorsteps. The platform works as a market place for major car rental companies both local and international chains; its services are available in more than 20 cities in Saudi Arabia, started operating in UAE, had more than 300 service providers listed, and achieved a 300% growth year over year for 2019.
The car rental industry in the MENA region is estimated at 4 billion dollars, with Saudi Arabia taking over 15% of the market at about 600 million dollars. Today, there are approximately 4 million rental vehicles servicing Saudi Arabia, and it’s expected to get to 4.4 million in the next four years.
Due to the increasing need for rental locations in the MENA region, Telgani has employed a novel, strategic, and tactical approach into account in order to ensure proper capturing of this evolving market. “Our marketing strategy takes place within two interrelated segments. On the corporate market, we have a focus on airports and hotel surroundings. While in the leisure segment, our rental services target agency owned facilities that are conveniently located within most major roads and metropolitan areas,” Abdulkader Almkinzy CEO and Founder of Telgani said.
Abdulkader Almkinzy launched the platform to address two key challenges, meeting the ever-increasing demand of car rental services and addressing the speed and accessibility required to make car rental easier and convenient to the customer. “We’re really excited about what the next 12 months hold for Telgani,” Abdulkader says. “We are experiencing one of the most significant and important developments towards vision 2030, and we consider ourselves fortunate to be in the position to join this movement in building a more efficient and sustainable car rental industry.” He further reiterated that the investment would be used in expansion and developing innovative services in the car rental industry, with Telgani team-wide experience of over 20 years in product development and automotive industry.
"Telgani is tackling a great opportunity in the car rental space, especially with customer behaviour currently changing to look for simple solutions of streamlining the long process of searching and renting transportation. We're proud of the Telgani team who are a top tier team and are playing a key role in the disruption of this market." Added Basmah Alsinaidi from the Impact46 Team.
Are you a startup looking for investment? Apply for funding to 75+ investors now.
COVID-19 further suppressed the number of deals in MENA-based startups in April but total funding increased by 202% as EMPG joined MENA’s unicorn list by raising $150M from existing shareholders. Learn more details in MAGNiTT’s April 2020 Dashboard.