Saudi automotive startup Speero closes $1.8m pre-series A funding round

Saudi-based automotive services startup Speero has closed its $1.8m pre-series A funding round, co-led by Nuwa Capital and Eq2 Ventures.

The funding round also includes the participation of Saudi and international investors including JIMCO (Jameel Investment Management Company), Impact46, Access Bridge Ventures and Mountain Partners, the company said in a statement.

Launched by Abdullah Bin Shamlan and Ameen Mahfouz in 2017, Speero is a digital platform for automotive after-sales.

Through the site, partners can buy parts for brands such as Toyota, Nissan, BMW, Audi, Honda, and more.

It is currently used by 1,000 partners and service providers, with over 750,000 registered customers across the kingdom. Brands on Speero include repair shops Mohrkey, Geoshield and h2o; suppliers AutoHub and Abdul Latif Jameel Motors; and insurance providers Salama Insurance, and Chubb Insurance.

The new funding will help deliver on the startup’s plan to “become a one-stop destination for services across the automotive after-sales ecosystem”, with its offering including spare parts and repairs for end customers such as individuals and insurance companies, the statement said.

Speero also hoped to use the funding to introduce the region’s “first” SaaS enabled business-to-business-to-consumer marketplace, offering an
integrated platform of services from inventory management and administration to business development and demand generation. Partners will also have access to data and analytics.

The funding round will also be used to bolster Speero’s logistics infrastructure, with the creation of fully-automated warehouses – also known as cloud warehouses – for partners in Riyadh and Jeddah, who will be able to set up storage at no cost and optimise the delivery of services.

Over the coming months, Speero will also invest in hiring across key leadership positions, it said.

“The automotive after-sales value chain hasn’t evolved in this digital era,” said Shamlan, Speero’s managing director. “Vendors seek solutions that will help create access to growth opportunities, while customers today want a convenient, affordable and digital first approach to their vehicle ownership experience.

“The next stage of our growth will be focused on strengthening our position and realising the untapped potential of this multi-billion-dollar sector.”

Saudi Arabia’s automotive components sector for commercial and passenger vehicles is set to grow to $10.15bn by 2023, the statement added.