Saudi startup Zension secures $30 million in Series A funding for mobile phone subscription services
In a significant move for the tech ecosystem in the Gulf Cooperation Council (GCC) region, Japanese trading company Sumitomo Corporation has made its first strategic investment in the region by participating in a $30 million funding round for Zension Technologies [1]. This investment marks Sumitomo's entry into the Middle East market.
Established in 2018, Zension Technologies is a Riyadh-based startup that offers protection, extended warranty, and guaranteed buy-back services for mobile devices and consumer electronics. The company, which has been built using five years of data and analytics on customer behaviours, is now set to revolutionise the industry with its new vertical offering, Zaam.
Zaam is a subscription-based model for tech devices, allowing consumers to subscribe to the latest technology products without the need for outright purchases. This shift towards flexible consumption in electronics reflects a growing trend in the GCC, as subscription models become increasingly popular for consumer electronics.
While specific operational details and pricing of the Zaam subscription are yet to be disclosed, the company has revealed that customers will be able to access a range of tech devices including smartphones, wearables, headphones, and laptops through the platform.
The third-party distribution partners for Zaam will operate across the region, with Saudi Arabia, which represents the region's largest device market with over 15 million smartphones sold annually, being a key focus.
Khalid Saiduddin, Co-Founder and CEO of Zension Technologies, stated that the company's mission is to drive behaviours that feed into the circular economy. With the rapid upgrade cycle in the GCC, where devices are replaced every 12-18 months, this move towards a subscription-based model could help address the significant e-waste challenges the region faces.
The Series A round was led by Wa'ed Ventures and also participated by Sumitomo Corporation and Global Ventures. This funding will be used to launch the new vertical offering, Zaam, and further expand Zension's offerings in the GCC.
[1] Source: TechCrunch, 2023.
- The strategic investment by Sumitomo Corporation in Zension Technologies, a business focused on electronic devices protection and flexible consumption, signifies their entry into the technology sector of the GCC region.
- As Zension Technologies prepares to launch its new vertical offering, Zaam, a subscription-based service for tech devices, it aims to revolutionize the industry and address the e-waste challenges in the GCC region, particularly in the largest device market, Saudi Arabia.
