Aramco’s venture capital arm, Wa’ed Ventures, worth $500 million is leading a funding round for Saudi consumer electronics startup Zension Technologies.
The funding is to assist Zension who earlier secured $30 million in a series A round to launch its new business vertical Zaam which is aimed at driving expansion in the GCC region.
The new business – Zaam is targeted at providing customers with a new way to purchase and own their tech devices. Its buy-back services and subscription-based technology upgrades aim to lengthen the lifespan of smartphones. This is in addition to lowering waste in the region’s largest economy and market for mobiles.
Funding Process
According to Aramco’s statement, the funding is being carried out by Saudi Aramco, with participation from Japanese Sumitomo Corporation and Dubai-based Global Ventures who all seek to disrupt the traditional model of ownership of personal tech devices.
With the new funding, Zension will offer customers a new way to buy, own and upgrade their devices through its new vertical Zaam. With Zaam, Zension offers consumers the chance to upgrade and experiment with new or different models of technology devices, switch regularly and enjoy free repairs, all at a lower price than traditional installment or buy now, pay later plans.
Commenting on the funding, Khalid Saiduddin, Co-Founder and CEO of Zension Technologies, said: “Our mission at Zension is to drive behaviours that feed into the circular economy by ensuring tech devices can be used for their full, usable life.
“Smartphones have at least a seven-year lifespan but, on average, are used for just three—and with more than five billion phones being thrown away every year, that’s a big problem to fix.
“With this new funding, we are elevating our business into a place where we can touch everyday consumers and dramatically shift their way of purchasing and owning their tech devices whilst making the right choice for the environment. Zaam is a win, win for all.” He concluded.
On his part, Anas Algahtani, Acting CEO of Wa’ed Ventures, said: “Investing in sustainability and advancing a circular economy are central to our strategy and our commitment to support the Kingdom’s Vision 2030 targets.
“Zension’s innovative approach and proven track record in developing scalable solutions that promote environmental responsibility align perfectly with our strategic investment priorities.
“We are excited to support Zension’s growth as it works to become a household name in the region—empowering customers to make choices that are both environmentally and economically sustainable.”
Zension and Zaam Model
Headquartered in Riyadh, Zension is the leading provider of protection, extended warranty and guaranteed buy-back services for mobile devices and consumer electronics plugged into major retailers, telcos and OEMs serving Saudi and UAE markets.
Having entered the market in 2018, Zension has gathered five year’s worth of data and analytics on telco customer behaviours, providing insights on when people are most likely to upgrade, which models they will likely buy, and which models are most likely to need repairs. This has led to the Zaam initiative.
Every device in the Zaam ecosystem is automatically repurposed, allowing the maximum residual value to be captured, and this value is then passed back to customers in the form of a low monthly subscription. Zaam’s pricing engine uses real-time data and predictive analysis to accurately anticipate upgrade behaviours and to know the value of a device at any given point in its useful life.
This combination of big data and a circular ecosystem powers Zaam’s unique, flexible subscription model. Customers will opt to purchase their tech with Zaam via large-scale, third-party distribution partners across the region starting this month.
Zaam also offers an environmentally ethical choice for customers—shifting behaviour from the buy-use-discard single-use approach of a linear economy to one where the lifespan of technology is optimised while enjoying the financial benefits that a circular model offers. Consumers who choose the Zaam way have optimal flexibility and pricing while feeling good about contributing to the circular economy.
Significance
Saudi Arabia is the largest device market in the gulf region, with 15+ million smartphones sold every year, while the Gulf Cooperation Council (GCC) has the fastest upgrade cycle in the world, at an average 12–18 months, making e-waste a significant challenge.
This strategic investment from Wa’ed Ventures and Japanese giant Sumitomo therefore comes at a time when Saudi Arabia has laid down clear goals for tackling climate change and a commitment to lead on initiatives that can bring down the region’s contribution to global warming and depletion of fossil fuels.
