Dubai-based start-up Udrive has raised $1.3 million in 48 hours, facilitated by crowdfunding platform Eureeca.

Eureeca, another start-up founded in Dubai, announced that Udrive had achieved a fundraising target of $1.25 million in 48 hours, and after leaving the investment opportunity open, reached a total of $1.3 million.

Eureeca said more than 200 people had invested a minimum of $500 each in the company.

The company first announced it was to use crowdfunding to inject fresh capital in October, after funding was hampered by the global COVID-19 pandemic earlier in the year.

Udrive facilitates car rentals charged by the minute and is available in Dubai, Abu Dhabi, and launched in Sharjah in 2018.

It operates a fleet of cars parked in locations across cities. Users registered with their driving licence and ID select one via the app, pick it up from the location on the app’s map, and park it at the end of the rental, after which they are charged depending on the duration.

Users increased by 20 percent in the last six months and are expected to double in 2021. 

The company, founded in 2014, competes with Dubai-based ekar, founded in 2015, which has already entered the Saudi market.

According to reports, Udrive, which recently announced its millionth trip, and raised $5 million in 2019, will use the funding to boost its car fleet in the UAE and pave the way for expansion into Saudi Arabia.

It was originally founded as a traditional car rental company, Aimex Rent A Car, before switching to the by-the-minute rental model and rebranding as Udrive in 2016.

(Reporting by Imogen Lillywhite; editing by Daniel Luiz)

imogen.lillywhite@refinitiv.com

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