Jeddah-headquartered peer-to-peer car rental marketplace Ejaro has raised $3.3 million from the leading local insurance company Tawuniya and angel investor in a Pre-Series A round, the company announced on Sunday. The round takes total capital raised so far by Ejaro to close to $4.5 million. It had previously raised $850,000 in a seed round in early 2021 and $300,000 in a pre-seed round in 2020.
Founded in 2019 by Mohammed H. Khashoggi, Ejaro is an Airbnb for Cars. It claims to be the first licensed P2P car rental platform in Saudi with a license from Saudi Transport General Authority.
Through its website and app, Ejaro connects vehicle owners who are looking to make extra money from their cars with individuals looking to rent them.
The primary value proposition for renters is apparently more affordable rates compared to traditional car rental companies, along with access to vehicles that may not be readily available through regular car rental services.
The startup claims to have served over 100 car owners to date who have used Ejaro to make over $650,000 in additional income from their cars.
Ejaro plans to use the funds to further develop its product and fuel its expansion.
