Egyptian auto-tech Startup, Odiggo raise $2.2m seed round from 500 Startups, Y Combinator and PlugAndPlay
Odiggo, an Egypt-based auto-tech startup, has announced the close of a $2.2 million seed round from global Venture Capital firms; 500 Startups, Y Combinator and PlugAndPlay. Regional VCs like Seedra Ventures, LoftyInc Capital, and Essa Al-Saleh (CEO of Volta-Tucks) also took part in the round.
Launched in December 2019 by Ahmed Omar and Ahmed Nasser, Odiggo is part of the current YC Summer batch. The Egyptian startup operates a marketplace that connects car owners with service providers who can solve their problems, from servicing and repair to washing and maintenance. The platform operates on a commission basis and Odiggo charges the car suppliers 20% commission on every transaction.
In May this year, Odiggo raised an undisclosed funding round to expand into other countries. At the time, the startup set its sight on United Arab Emirates (UAE), Bahrain, Kuwait, Oman, and Qatar.
Odiggo claims to have onboarded over 50,000 car owners across three markets – Egypt, the UAE, and Saudi Arabia. The startup also revealed that it works directly with over 300 merchants. Since the pandemic started last year, Odiggo claims its merchant numbers have grown 40% month-on-month while its user base has increased 200%.
Egyptian e-Commerce Startup Odiggo expands to UAE
“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 CEO, Ahmed Omar.
Omar also disclosed that this latest funding will be used to develop its tech and dashboard software. Adding that Odiggo’s priority will be to achieve consistent growth while expanding its team across the UAE, Saudi Arabia, and Egypt.
The auto servicing industry is worth over $61 billion across the Middle East and African region alone, and Odiggo intends to become a market leader in the region over the next few years. The startup also has the lofty ambition of going public in 2024.
“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.
We aim to be the first $100 billion company coming out of the region,” cofounder Ahmed Nasser, remarked.
In a statement, Idris Ayodeji Bello, managing partner at LoftyInc said the Odiggo team has been a delight to work with and they look forward to an IPO soon, despite early days.
“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 Nasser, supported by the rest of the employees, have been a joy to work with and we are on a countdown to the IPO,” said Bello in a statement.
Egyptian Odiggo Raises Fund, Plans International Expansion