Dubai, United Arab Emirates: ekar, the Middle East’s first and largest carshare operator, will now launch operations in Riyadh following the company’s successful Series B totaling USD$17.5 million in June of this year. Dubai-based venture capital firm Polymath Ventures led the round which includes Al Yemni Group and Audacia Capital.
“We are excited to announce the launch of ekar Riyadh and are eager to improve the lives of hundreds of thousands of Saudi residents and tourists alike with ekar’s seamless carshare service,” says Vilhelm Hedberg, CEO ekar Middle East. “Today, ekar UAE services 50,000 bookings per month, a number which we expect to quadruple over the next twelve months as we launch services across cities in Saudi Arabia and other Gulf countries. We have 1,000 ekars in our fleet and over 75,000 members and envision surpassing 10,000 ekars and over a million members by 2021.”
Commenting on the successful Series B raise, Hedberg notes: “We are delighted to have a select group of strategic investors who are aligned with ekar’s passion to provide cost-effective mobility across emerging markets. ekar’s in-house tech team now has the fuel to scale ekar across MENAT.”
ekar is entering an inflection point as it arrives Saudi Arabia, where a young and tech-savvy population of 20 million smartphone users are by-passing traditional car ownership in favor for alternative mobility solutions. ekar is a natural extension of the transportation vertical in KSA and is perfectly suited to address a growing demand for cost-effective transportation on the back of ekar’s four years of experience building a world-class carsharing business. In addition, more than 70,000 women in the Kingdom have been issued driving licenses, and ekar is well-positioned to be the ‘first-car solution’ for these drivers. ekar is launching in Riyadh with 600 ekars and will launch in other cities throughout Saudi including Dammam, Jeddah, Mecca, Medina, and KAEC.
“We believe smart systems and shared transport platforms like ekar are the future for sustainable mobility especially in cities with densely populated environments such as Riyadh. We invest with conviction where teams are driving innovation to solve tomorrow’s problems today, and we look forward to helping ekar succeed,” says Ali Hashemi, Managing Director of Polymath Ventures.
Emad Mansour, CEO of Audacia Capital, sees strong alignment with the broader vision in The Kingdom. “Saudi Vision 2030 puts great emphasis on development of infrastructure, especially in urban areas, and we are fortunate that the Kingdom’s goal aligns with ekar’s values.”
New members in Saudi Arabia can enjoy two hours of free drive time upon registering via the ekar App. ekar is directly integrated with Elm’s Products such as Yakeen and Tamm so these members will be instantly approved after entering a valid email address, mobile number, National/Iqama ID number, and driving license expiry date. Credit and debit cards including MADA are accepted forms of payment in addition to Apple Pay.
ekar’s pricing model is simple from 40 Halalas to 75 Halalas per minute depending on car models, which range from economy to business class vehicles. The average ekar ride is 60 minutes that can cost as little as 24 Riyals, a price which includes fuel and insurance and no monthly membership fees and is a fraction of the cost of ride-hailing services, traditional car rentals or taxis. What’s more, with ekars spread across hotspot areas in Riyadh, including the airport, ekar allows for the benefits of self-drive without the associated high costs of car ownership.
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ekar closed its Series B round of $17.5M on 15th of June 2019 and has deployed these funds to launch its Saudi Arabia service starting with Riyadh on November 17th 2019. ekar’s financial performance, averaging a 12% growth month on month for the last 24 months, boasts 75,000 members and over 1,000 ekars in its fleet. By 2021, Co-Founder and CEO Vilhelm Hedberg anticipates over 10,000 ekars and over 1,000,000 members as it expands across cities in the Gulf.
About ekar
ekar uses state-of-the-art instant reservations and smart access technology, providing a network of vehicles for on-demand rent in the UAE. ekar enables users to easily discover, book, and unlock available cars via its mobile app and website providing a cost-effective alternative to daily and monthly rentals by offering a “pay-per-minute” pricing scheme.
Website: www.ekar.me
ekar accomplishments to date:
- Forbes Middle East 2016 - Most Promising UAE-based Start-up
- Forbes Middle East 2017 - #35 Top 100 Startups in the Arab World
- GITEX 2017 - Business Innovation Award
- Sharjah Entrepreneurship Festival - Winner Logistics & Transportation Award
- Arabian Business Awards 2018 - Shortlist for SME Leader of the Year - Vilhelm Hedberg
- Forbes Middle East 2018 - #5 Top 100 Startups in The Middle East
- Tahawul Tech 2018 - UAE’s Top 5 Tech Innovators
- Best Digital Transformation in Transportation 2019 - Smart SMB Awards
About Polymath Ventures
Polymath Ventures is an early stage investment firm focused on technology and healthcare, investing both globally and regionally. As a founder-led investment firm, Polymath takes a hands-on approach to investing, driving value creation by empowering its founders to take bold steps in solving large problems.
Website: www.polymath.vc
For more information, images or to arrange an interview with a spokesperson, please contact:
Caroline Holmberg / Laura Jones
caroline@coco-comms.me / laura@coco-comms.me
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