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Car rental platform Ejaro has secured USD 3.3 mn (SAR 12.3 mn) in funding what it is calling a pre-Series A round, Wamda reports. The round was led by local ins. company Cooperative Ins. (Tawuniya) with participation from unnamed angel investors — bringing Ejaro’s total raised capital to USD 4.5 mn.
Where the funds are going: The peer-to-peer car rental outfit will use the capital injection to enhance its product offering and expand regionally. It didn’t offer any information about where, when, or how it plans to expand.
Airbnb for cars: Jeddah-based Ejaro set up shop in 2019 as a licensed peer-to-peer car sharing platform, according to its website. It aims to connect car owners with people looking to rent a caron a short-term basis through its mobile applications (App Store, Google Play) and website. The startupclaims to have facilitated over 25k trips since its inception, generating SAR 2.5 mn for some 100 car owners.
Tapping the ins. market:Ejaro bundles in comprehensive ins. coverage (pdf) schemes, safeguarding car owners against loss or damage from accidents, fires, theft, natural disasters or malicious acts by a third party. The company has partnerships with local insurers including Najm, Absher and Kingdom Brokerage.
BACKGROUND: Ejaro had previously raised some USD 300k in a pre-seed round back in 2020, which was followed by a 850k seed round led by BIM ventures in 2021.
