Wa’ed Ventures, the venture capital arm of Saudi Aramco, has led a $30 million Series A funding round for Zension Technologies, a consumer electronics startup based in Riyadh. Japanese conglomerate Sumitomo and Dubai-based Global Ventures also participated in the investment round. Zension Technologies provides a technology subscription service that allows customers to access the latest tech devices for a monthly fee rather than purchase them outright.
This model allows users to upgrade, switch brands, or return devices based on their needs. The new funding will enable Zension to launch a tech subscription platform called Zaam in Saudi Arabia and the UAE in the first quarter of 2025.
Wa’ed Ventures leads funding for Zension
The platform will allow customers to seamlessly upgrade their devices through telecom providers like Virgin Mobile while old devices are repaired and resold. 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,” said Khalid Saiduddin, co-founder and CEO of Zension Technologies. With this new funding, we are elevating our business into a place where we can touch everyday consumers and dramatically shift how they purchase and own their tech devices.
Sumitomo’s involvement in the funding round marks its first investment in the Gulf Cooperation Council (GCC) region.
This move is significant as the venture capital market in the Middle East and North Africa (MENA) raised $1.3 billion from January to September 2024, with Saudi Arabia securing 39% of MENA’s total funding despite a decline from the previous year. The investment in Zension Technologies reflects a growing trend of technology-based companies setting up in Saudi Arabia, supported by strong backing from both local and international investors. This trend aims to foster innovation and sustainability in the consumer electronics sector.
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