Saudi Arabia-based automotive marketplace Syarah is planning to expand both inside Saudi Arabia and across the MENA region after raising 75 million riyals ($20 million U.S.) for its Series B investment round.
Syarah plans to use the investment round, co-led by asset manager Impact46 and Saudi joint stock company Elm, to expand its inventory, improve services and expand to new markets across the region.
The investment round included participation from Budget (United International Transportation Co), Vision Ventures and Yousef Al-Rashidi, the founder of Haraj.
“Syarah’s technology focused model has been a huge fuel to the growth of the platform exceeding 300 million riyals in sales and a rapid growth rate within a very short period. As the platform continues to improve its services in the local market, Syarah is planning to expand its operation in the MENA region,” said Fayez Al-Anazi, co-founder of Syarah.
The company was founded in 2015 by Salah Sharef and Fayez Al-Anazi as a classified site delivering leads to dealers. However, since 2019 Syarah has been focussing on expanding its digital retailing offering in both new and used cars, providing quality cars with inspections and doorstep delivery.
Syarah plans to use some of the money to establish reconditioning centres to centralize its inspection, reconditioning and photography operations in order to scale up its used car sales and navigate the fragmented Saudi used car market. It also plans to expand its sourcing process buying used cars from individual sellers and fleet companies.
“We have successfully sold more than 6,000 cars online so far, and with this new investment, we intend to significantly grow our inventory and sales over the next few months,” said Salah Sharef, CEO and co-founder of Syarah.
Earlier this year, Syarah said its aim is to reach 5,000 online vehicle sales per month within three years, capitalising on Saudi’s large population and high digital penetration. Around 700,000 new cars and 1.5 million used cars are sold each year across the country with the highest demand coming from Riyad, Jeddah and Dammam.
“The platform is targeting a largely fragmented market in the Kingdom and it has created an opportunity within by providing digital solutions that cater to the consumer trends and facilitates the process of buying cars online,” said Abdulaziz Al-Omran, managing partner of Impact46.