The auto tech focused startup already has over 50,000 car owners in Egypt, the UAE and Saudi Arabia
Egyptian startup and digital marketplace for auto-repairs and automotive spare parts, Odiggo recently raised $2.2 million in a funding round as part of Y combinator’s YC Summer Batch.
The auto tech focused startup already has over 50,000 car owners in Egypt, the UAE and Saudi Arabia, helping them find car services and spare parts suppliers, and helping suppliers and service providers reach more customers without spending large budgets on marketing.
According to MAGNiTT’s Egypt H1 2021 Venture Investment Report, Egypt’s delivery and logistics sector saw 883% YoY growth in capital raised, accounting for 26% of all funds raised in Egypt in the first half of the year.
In their Egypt Venture Investment Report for 2020 report, they note that growth rate of 30% YoY between 2015 and 2020, holding around 18% of the region’s 2020 total venture investment
Odiggo works with over 300 merchants, stating in an official release that merchant numbers have grown 40% month-on-month as users increased by 200% since the beginning of the pandemic.
It uses a commission-based model, charging the car suppliers 20% commission on every transaction, bridging a market need while increasing third-party exposure and sales.
“We believe we are at a watershed moment. It is incredible that since COVID hit, Odiggo has experienced over 10 times growth in the last year,” said co-founder Ahmed Omar.
The new funding round comes before YC Summer Batch’s Demo Day, with a roster of existing investors participating in the round including Y Combinator, 500 Startups, and Plug and Play Ventures. Regional VCs like Seedra Ventures, LoftyInc Capital, and Essa Al-Saleh (CEO of Volta-Tucks).
Odiggo previously raised $600,000 in a January funding round, with Essa Al-Saleh also participating.
CEO Omar said with this new round, Odiggo’s priority will be to attain consistent growth while expanding its team across the UAE, Saudi Arabia and Egypt, as well as further develop its tech and dashboard software.
“For example, the platform would be hooked up to the car owner’s vehicle and link the vehicle to the marketplace and provide frequent updates of your vehicle condition so you’ll be informed if the tires are low, the oil needs changing, or if a service is required.”
“We are also aiming to be fully focused on spending more on our product and technology, as building an ecosystem to monetize requires more capital. Our target is to go for IPO by 2024 and achieve one billion services booked, and this requires a lot of network effects, infrastructure and technology,” the CEO said.