Saudi Arabia-based car rental platform Telgani, has closed a six figure seed funding round. The round was backed by 500 startups, Saudi venture capital company, impact46 and a group of angel investors.
Founded in 2018, Telgani allows its users to order a car to rent via its app, which is then delivered directly to the customer. The company now operates across more than 20 cities in Saudi Arabia and recently expanded to the UAE where it has more than 300 service providers listed.
“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,” said Abdulkader Almkinzy, founder and CEO at Telgani
Telgani claims to have and achieved a 300 per cent growth year-on-year for 2019.
“[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,” said Almkinzy.
The investment will enable the company to enhance its car-rental services and propel its expansion.
The car rental industry in the Middle East and North African (Mena) region is valued at $4 billion according to Telgani, with Saudi Arabia accounting for more than15 per cent of the market at about $600 million.
“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 are proud of the Telgani team who are a top tier team that are playing a key role in the disruption of this market,” said Basmah Alsinaidi, financial analyst at Impact46.