Wa’ed Ventures, the $500 million venture capital fund owned by Saudi Aramco, and Japanese conglomerate Sumitomo have invested $30 million in Zension Technologies, a Riyadh-based consumer electronics startup. This round of funding also included Dubai-based Global Ventures.
Zension offers a unique tech subscription model, allowing customers to access the latest tech devices through a monthly fee, with flexibility to upgrade, switch brands, or return devices. The startup works with clients such as Saudi Arabia’s largest retailer, Jarir Bookstore, and the country’s major telecom provider, STC.
The new investment will enable Zension to launch Zaam, a tech subscription platform in the UAE and Saudi Arabia in the first quarter. Through Zaam, customers can subscribe to consumer tech via telecom providers, including Virgin Mobile, with the ability to upgrade devices while their old ones are repaired and resold.
Zension’s platform has gathered five years of data on consumer behavior, including when users are most likely to upgrade, what models they prefer, and which devices need repairs. CEO Khalid Saiduddin emphasized the company’s mission to extend the lifespan of smartphones and reduce electronic waste, noting that smartphones have a seven-year lifespan but are typically used for just three years.
Sumitomo’s investment marks the company’s first in the GCC region. The venture capital market in the Middle East and North Africa raised $1.3 billion in the first nine months of 2024, with Saudi Arabia securing 39 percent of the total funding, although this represented a 13 percent decline compared to last year.
