Saudi Syarah closes $60 million in a Series C round
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Funding Achievement: Syarah, a Saudi Arabia-based autotech company, has successfully raised $60 million in a Series C funding round, led by Artal Capital, increasing its total investment to over $82 million since its founding in 2015.
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Business Model and Growth: Founded by Salah Sharef and Fayez Al-Anazi, Syarah transitioned from a classified ads platform to a comprehensive e-commerce solution for buying new and used cars, now selling over 12,000 vehicles annually.
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Usage of Funds: The newly raised funds will be utilized to expand Syarah’s operations and strengthen its position as a leader in the Saudi used car market.
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Investor Confidence: Artal Capital and other participating investors expressed strong confidence in Syarah’s innovative approach and growth potential within the fragmented used car market.
- Strategic Vision: Syarah aims to enhance its value proposition by improving car sourcing, inspection, and sales processes, backed by technological advancements to increase customer satisfaction.
Saudi Syarah closes $60 million in a Series C round
- Saudi Arabia-based autotech Syarah has raised $60 million in a Series C round, led by Artal Capital, with participation from Elm, Impact46, Tawuniya, and Derayah Ventures, bringing the total investment to date to more than $82 million.
- Founded in 2015 by Salah Sharef and Fayez Al-Anazi, Syarah allows its consumers to buy new cars online and have them delivered to their doorstep. In 2019, Syarah started selling used cars as well, accompanied by a free car inspection report, a five-day money-back guarantee, and a one-year warranty.
- Syarah will use the latest funds to further fuel its expansion and growth.
Press release:
Syarah, leading car trading e-commerce platform, has successfully raised more than SAR225 million ($60 million) from a group of investors in its latest Series C round. The round was lead by Artal Capital, a Riyadh-based investment management firm, through Artal Growth Opportunities Fund. Other notable investors who participated in the round included Elm, Impact46, Tawuniya Insurance, Derayah Ventures, and Yousef Alrasheedi (founder of Haraj). The total amount raised included a US$ 20 million venture debit facility from PFG.
This marks the second investment by Artal Growth Opportunities Fund, a private equity fund which aims to support high-growth, technology-enabled companies in Saudi Arabia and the GCC region with a target fund size of SAR500 million, following its investment in FlyAkeed last year.
The funding proceeds will be utilized to fuel Syarah’s ambitious growth plans, solidifying its position as the market leader in the Saudi used cars market. Since its inception in 2015, Syarah has evolved from a classified ads platform for cars to a comprehensive e-commerce offering with a strong focus on enhancing the customer purchasing journey in the used-car market. Syarah achieved significant growth over the past two years, and currently sells more than 12 thousand cars per year.
Commenting on the investment, Salah Sharef, CEO and Co-Founder of Syarah, said:
“We are thrilled to have the backing of such esteemed investors led by Artal Capital. This investment will enable us to further enhance our value proposition in the fragmented used cars market. Our operational success in cars sourcing, inspection, reconditioning, and online sales have already set a new benchmark in the industry, and with this funding, we aim to expand our reach and improve our services even further.”
Rayan Alrasheed, CEO of Artal Capital, added:
“Syarah’s innovative approach to the used car market aligns perfectly with our investment strategy. We see tremendous potential in their business model and are confident that our investment will help Syarah scale to new heights. This funding round is a testament to our commitment to supporting tech-enabled companies that drive economic growth and create significant value in Saudi Arabia and the wider GCC region.”
Wassim Moukahhal, Head of Alternative Investments at Artal Capital, also commented:
“We are excited to support Syarah in this next phase of growth. Their ability to combine technology with traditional car sales processes has not only improved efficiency but also enhanced customer satisfaction. We look forward to seeing Syarah continue to innovate and lead in the market.”
Here is a summary of the relevant information regarding Syarah’s Series C fundraising round:
Startup:
- Name: Syarah
- Founded: 2015
- Founders: Salah Sharef and Fayez Al-Anazi
Funding Round:
- Amount Raised: $60 million
- Series: C
- Total Investment to Date: Over $82 million (including previous rounds)
Investors:
- Lead Investor: Artal Capital
- Through: Artal Growth Opportunities Fund
- Other Investors:
- Elm
- Impact46
- Tawuniya Insurance
- Derayah Ventures
- Yousef Alrasheedi (founder of Haraj)
- Additional Funding:
- A $20 million venture debt facility from PFG
Use of Funds:
- The raised funds will be utilized to expand and grow Syarah’s operations, solidifying its position as a market leader in Saudi Arabia’s used car market.
Commentary from Founders and Investors:
- Salah Sharef (CEO and Co-Founder of Syarah): Expressed enthusiasm for the support from esteemed investors and highlighted plans for enhancing value proposition in the used cars market.
- Rayan Alrasheed (CEO of Artal Capital): Emphasized the alignment of Syarah’s innovative approach with their investment strategy and the potential for business model growth.
- Wassim Moukahhal (Head of Alternative Investments at Artal Capital): Commented on the benefits of combining technology with traditional car sales processes to improve efficiency and customer satisfaction.
This information provides a comprehensive overview of the funding details, key stakeholders, and strategic intentions behind the investment.