UAE-based pay-per-minute car rental service Udrive has announced a $5 million Series B round of funding. The app-based startup was founded in 2017, undergoing a previous round of funding to the tune of $1 million, tripling investors’ returns.
It said that the second round is based on the company’s impressive performance in the mark, and is anticipating a round of Series C funding to take place in another 18 months. The new capital will allow Udrive to execute its expansion plans. The firm aims to increase the number of premium cars in its fleet, such as Mercedes-Benz, BMW, and Ford Mustangs. It is also looking to expand into Saudi Arabia and other GCC countries.
Udrive offers a unique pay-per-minute fare pattern.
CEO and founder of Udrive, Hasib Khan, said, “This is an exciting time for both Udrive and potential investors. When we launched just over two years ago, no one anticipated just how successful the concept would be, with many doubting how it would work in this region. We are incredibly proud to have proven those doubters wrong, while simultaneously delivering unprecedented return for our first round of investors.”
A dense expat population in markets such as Dubai contributes to the popularity of car-sharing. With many of this demographic reluctant to invest into a car. Regular travel commitments and the uncertainty in how long one will remain a resident are major deterrents in car ownership among expats.
A subsequent round of funding eighteen months down the line will allow Udrive to expand to more markets outside of the UAE as well as GCC.
Hasib also said, “With over 1,300 people using the service in the UAE daily, and our plans to expand both our premium fleet and service across the GCC, we are confident investors will be attracted to the opportunity our Series B round of funding presents.”
Udrive is currently operational in Dubai, Abu Dhabi, Sharjah, and Ajman. The latest financial shot in the arm will see the firm expanding to neighbouring GCC countries.