Car service can be a tedious, costly and time-consuming process. This can cause more costly repairs and safety problems down the road, which is not something that car owners like.
Odiggo, an auto tech startup based in Dubai and Egypt, is one platform that addresses this problem. This platform allows car owners to find parts and services suppliers for their cars from nearby providers. Suppliers benefit from increased sales and reaching more customers, without having to spend on marketing.
Odiggo is part the current YC Summer batch. Odiggo has secured a $2.2million seed round prior to Demo Day. The round's existing investors include Y Combinator and 500 Startups. Plug and Play Ventures is also participating. Regional VCs such as LoftyInc Capital and Seedra Ventures took part, as well.
Odiggo was launched by Ahmed Omar, Ahmed Nasser in December 2019. Odiggo is a marketplace that connects car owner with service providers who can help them. This includes everything from repair and servicing to maintenance and washing. Odiggo charges 20% commission to car dealers for every transaction.
Odiggo is used by over 50,000 car owners in three countries: Egypt, UAE and Saudi Arabia. Odiggo also has direct relationships with more than 300 merchants. The company claims that merchant numbers have increased by 40% month-on-month, while its user base has grown 200% since the outbreak.
We believe that we are at a turning point. Omar, co-founder of Odiggo, stated that Odiggo's growth has been astonishing since COVID was launched.
Omar, CEO, stated that Odiggos priority with the new round will be consistent growth and expanding its team across the UEA Saudi Arabia, Egypt, and Saudi Arabia.
He also said that Odiggo uses a variety of data sources, including internal software and car metrics, to offer more product options.
Odiggo will use a portion of the funding to develop its technology and dashboard software, he stated.
The platform could be connected to the vehicle of the owner and would provide regular updates on the condition of the vehicle. This will let you know if your tires are wearing out, if your oil needs to be changed, and if a service is needed.
Odiggo, a player in the logistics and mobility sectors, has seen a lot of attention from investors due to the pandemic. Odiggo wants to be a market leader in a sector that is worth more than $61 billion today in the Middle East and Africa. Odiggo has loftier plans to go public over the next three-years.
We also want to spend more on our product, technology, and infrastructure. Building an ecosystem that can be monetized requires more capital. The CEO stated that our goal is to have an IPO in 2024 and book one billion services. This requires a lot infrastructure, network effects and technology.
Nasser said that we aim to be the first $100-billion company to come out of the region.
Its investors, LoftyInc managing partner Idris Al-Saleh and Essa Ayodeji, have joined the startup plan, despite being in their early stages.
Odiggo is a great company to support through our Afropreneurs Funds. We are thrilled to help them in their quest to transform the automotive parts industry and offer superior service to clients starting from MENA. Bello said that Omar and Nasser were a pleasure to work with, and they are counting down to the IPO.
