X SD's subsidiary, Zension, secures $30 million in Series A funding for mobile phone subscription services
In a strategic move to expand its digital and subscription-based business models, Japanese conglomerate Sumitomo Corporation has made its first investment in the Gulf Cooperation Council (GCC) region. The investment was made in Zension Technologies, a Saudi Arabian startup that recently launched a new subscription service called Zaam.
Zaam, a subscription model service tailored for the unique market demands of the GCC region, aims to provide access to smartphones, wearables, headphones, and laptops on a subscription basis. The service is expected to revolutionise the way consumers in the region access and manage their electronic devices.
The investment, which forms part of Zension's Series A funding round, is backed by Wa'ed Ventures, Sumitomo Corporation, and Global Ventures. The funds raised will be used to launch Zaam and further support Zension's expansion.
Zension, founded in 2018 and headquartered in Riyadh, has built its offering using five years of data and analytics on customer behaviours. The startup currently provides protection, extended warranty, and guaranteed buy-back services for mobile devices and consumer electronics.
Khalid Saiduddin, Co-Founder and CEO of Zension Technologies, expressed the company's mission to drive behaviours that feed into the circular economy by ensuring tech devices can be used for their full, usable life. This is particularly important in the GCC region, which has the world's fastest upgrade cycle at 12-18 months, presenting significant e-waste challenges.
Saudi Arabia represents the region's largest device market, with over 15 million smartphones sold annually. With the investment from Sumitomo Corporation, Zension is poised to make a significant impact in the region's device market.
However, the exact financial details of the Series A round and comprehensive descriptions of Zaam's functionality remain unavailable at this time. As more precise financial figures and detailed service descriptions become available, a fuller picture of Sumitomo Corporation's investment strategy and Zension's market approach with Zaam will emerge.
This strategic investment by Sumitomo Corporation marks a significant step in the evolution of the GCC market, aligning with broader regional trends to expand digital and subscription-based business models. It also underscores the growing importance of the GCC market as a key player in the global tech industry.
- The investment made by Sumitomo Corporation in Zension Technologies, a Saudi Arabian startup, is a strategic step in their journey towards expanding their digital and subscription-based business models, with the aim of revolutionizing the consumer electronics market through the new subscription service Zaam.
- The involvement of Sumitomo Corporation in the Series A funding round of Zension Technologies, a pioneer in the tech sector of the GCC region, signifies a growing interest in finance, particularly in the realm of technology and investing, as the region evolves to embrace digital and subscription-based business models.
