Autotech startup Odiggo raises $2.2 million in Seed round
- Dubai-based auto-tech app Odiggo has raised $2.2 million in a Seed round, from Y Combinator, 500 Startups and PlugAndPlay.
Founded in December 2019 by Ahmed Omar and Ahmed Nasser, Odiggo provides car owners with affordable automotive parts and services through a one-stop-shop that links them to dealerships.
Odiggo provides services to over 45,000 users across three markets and works directly with over 300 merchants to offer users a seamless experience. It claims to have a 40 per cent month-on-month consistent growth and 200 per cent user base increase since the start of the pandemic.
Odiggo will use the newly acquired investment to expand its team and enhance its growth in the region, especially in the UAE, Saudi Arabia and Egypt.
“We are on our way to IPO by 2024 with #BillionBookings as our next achievable goal. We are building an ecosystem for all car owners, suppliers and mechanics. We aim to be the first $100 billion company coming out of the region,” said co-founder Ahmed Nasser.
Dubai-based auto-tech app Odiggo are drawing record level funding as they secure their latest investment round with three of the world's top seed-stage VCs; Y Combinator, 500 Startups and PlugAndPlay.
After launching in December 2019 with trailblazing success in the region, the groundbreaking car service specialist, Odiggo has succeeded in securing a world-first by having three of the world's top seed-stage VCs on board.
The automotive-tech app is on a mission to make car owners' lives easier by providing a one-stop shop for everything car-related. Their slick but easy to use online platform conveniently links car owners to dealerships to present the customer with an abundance of options and the best prices in the market. This allows customers to be provided with a quick, easy and affordable service at the touch of a button. Currently, Odiggo services over 45,000 users, across 3 markets and works directly with over 300 merchants to offer users a seamless experience, this can be seen in the 40 per cent MoM consistent growth and 200 per cent user base increase at the start of the pandemic. The automotive tech company is led by a team of technology experts who demonstrate global experience from billion-dollar companies including FIFA, Hyundai, Jumia and Reckitt Benckiser to name a few.
They join previous Regional VCs Seedra Ventures, Lofty Inc Capital and also Essa Al-Saleh (Volta-Tucks CEO, the electric vehicles manufacturers) who will also be investing again for the third time. “We believe we are at a watershed moment,” said Ahmed Omar, co-founder of Odiggo. “ It is incredible that since covid hit, Odiggo has experienced over ten times growth in the last year.” The COVID-19 pandemic, which has upended the shared mobility sector, ride-hailing and public transportation, has Odiggo and fellow auto-tech venture capitalists focused on logistics and supply chain visibility — two areas that have promise in this COVID-oriented world.
"We are excited to back Odiggo through our Afropreneurs Funds in its quest to transform the automotive parts market and provide superior service to clients, starting from Mena. The leadership team of Omar and Naser, supported by the rest of the employees have been a joy to work with and we are on a countdown to the IPO!" said the Managing Partner of LoftyInc Capital Management, Idris Ayodeji Belli, adding: “At LoftyInc, we are always looking for balanced founding teams, with a bias towards execution, going after a large market, and Odiggo epitomises all of that."
Odiggo has raised an astonishing level of investment to the tune of $2.3 million in the seed stage, an indication that private capital markets do understand the significance in the future of auto-tech. Boutique research and advisory firm Quilty Analytics recorded $5.7 billion in investments for the first quarter of 2021, a 356 per cent increase from $1.2 billion in the same period last year. “We as co-founders come from a growth background which led us to grow Odiggo exponentially for the past 18 months,” said Ahmed Omar and Ahmed Nasser.
“We are very selective when onboarding, not just talent but potential investors and partners in this company. We realised we were at a time of growth and needed the right kind of partners not just to invest but to help us achieve our highly ambitious goals. This round of investing was the toughest yet, we went through a very rigorous process when trying to find the right fit, even turning down a few firms along the way,” said Nasser. Over the past few years, Ahmed Nasser has been responsible for the growth of many notable startups. An expert in growth/marketing, Nasser decided to join Odiggo’s journey, where he took the company to 100x in 18 months.
“New age players like Odiggo backed by founders who carry deep auto industry and technology experience are disrupting this large market by adopting rapid digitalisation to improve operating efficiency and deliver a better experience to car owners," said Seedra Ventures.
Odiggo is the region’s fast-growing automotive aftermarket platform, primed to disrupt the region's large automotive aftermarket industry, valued at over $28 billion. The industry is expected to maintain solid growth patterns, projected to grow at a CAGR of 6 per cent over the coming five years driven by growing demand for vehicle modifications, and the increase in women drivers.
In an industry today worth over $61 billion (AED224 billion) in the Middle East and Africa alone, this is an exceptional opportunity for Odiggo to use its e-commerce expertise to transcend the market and become the leading company in the industry. “We aim to continue innovating and solving every problem for individual car owners and businesses in an ultra timely manner, not just in the region but globally,” said Ahmed Omar.
Following their latest round of highly successful investments, Odiggos top priority will now be consistent growth. “We raise to fuel our growth, that's the main thing, so, mainly it’s focusing on technology and expanding our team in UAE, Saudi Arabia and Egypt,” said Omar.
Since Odiggo taps into a mix of data sources—including car metrics and internal software, it can use that same information to identify opportunities. Part of Odiggos seed-stage funding will also be used to continue developing their deep-tech dashboard software. For example, the platform would be hooked up to the car owners’ vehicle and link the vehicle to the marketplace and provide frequent updates of your vehicle condition, so, you’ll be informed if the tyres are low, the oil needs changing or if a service is required.
“We are on our way to IPO by 2024 with #BillionBookings as our next achievable goal. We are building an ecosystem for all car owners, suppliers and mechanics. We aim to be the first $100 billion company coming out of the region,” said Ahmed Nasser.