Wa’ed Venture, The VC Arm Of Saudi Aramco, And Japanese Financial Conglomerate Sumitomo Back Circular Economy Startup Zension Technologies With $30M Series A Funding

Zension Technologies has raised a Series A round of $30M 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.

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. 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 year’s worth of data and analytics on customer behaviors 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.

Recognizing the rapid growth in sales and frequent upgrading of tech hardware coupled with a lack of disruption in the space, Zension 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 installment 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 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 behaviors 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 behavior from the buy-use-discard single-use approach of a linear economy to one where the lifespan of tech is optimized, whilst enjoying the financial benefits that a circular model offers. Consumers who choose the Zaam way have optimal flexibility and pricing whilst feeling good about contributing to the circular economy.

Saudi is the largest device market in the region with 15+M smartphones sold every year, while the GCC has the fastest upgrade cycle in the world at average 12-18 months making e-waste a significant challenge. Strategic investment from Wa’ed Ventures and Japanese giant Sumitomo 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.

Commenting, Khalid Saiduddin Co-Founder and CEO of Zension Technologies said: “our mission at Zension is to drive behaviors 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.”

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.”