Zension Technologies Raise $30 Million in Series A Round

Riyadh-based start-up Zension Technologies on Tuesday said that it has raised a Series A round of $30 million led by Wa’ed Ventures, the $500 million VC arm wholly owned by Saudi Aramco, with participation from Japanese Sumitomo Corporation and Dubai-based Global Ventures to disrupt the traditional model of ownership of personal tech devices.

This marks the first strategic investment that the 100-year-old Japanese global group, Sumitomo Corporation, has made in the GCC. This also 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.

Saudi Arabia is the largest device market in the region, with 15+ million smartphones sold every year, while the GCC has the fastest upgrade cycle in the world, at an average 12 to 18 months, making e-waste a significant challenge.

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, according to a statement.

With the new funding, Zension will offer customers a new way to buy, own and upgrade their devices through its new vertical Zaam. Having entered the market in 2018, Zension has gathered five years’ worth of data and analytics on 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.

Identifying Gaps

Recognising the rapid growth in sales and frequent upgrading of tech hardware coupled with a lack of disruption in the space, the Saudi firm has identified a gap in the regional consumer market to offer personal tech hardware on subscription, from smartphones to wearables to headphones, laptops and more.

Consumers worldwide are readily adopting subscription models for everything from entertainment to mobility, enjoying the benefits of greater product choice, flexibility and freedom from being locked into contracts at high price points. With Zaam, Zension brings these same benefits to personal tech offering the chance to upgrade and experiment with new or different models, switch regularly and enjoy free repairs, all at a lower price than traditional instalment or buy now, pay later plans.

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.