MENA Startups Getting Funded: Carpool Arabia Shares Its Story

The Dubai-based ridesharing company announced in late September that it had raised US$350,000 in its seed-round investment.

learn more about Aby Sam Thomas

By Aby Sam Thomas

Carpool Arabia
Carpool Arabia co-founders Guillaume Arnaud and Benjamin de Terssac.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Despite the dry and dreary outlook often attributed to funding startups in the MENA startup ecosystem, Carpool Arabia made headlines recently when it secured a substantial investment into growing its business. The Dubai-based ridesharing company announced in late September that it had raised US$350,000 in its seed-round investment, which follows the initial $70,000 co-founders Benjamin de Terssac and Guillaume Arnaud had put in to get the startup off the ground in February. French venture capital firm Kima Ventures and Dubai-based media company Mediaquest have led this new round of investment, with both companies claiming to be impressed by Carpool Arabia's business potential, with the startup having seen number of users increase by 21% month-on-month since its launch.

The Process

When asked about Carpool Arabia's methodology when choosing its investors, de Terssac candidly admits that it wasn't a walk in the park, saying, "Choosing is maybe a luxury you have in Silicon Valley, but here, it's more about who is crazy enough to invest in an early stage tech venture, rather than buying another apartment in Dubai Marina." According to de Terssac, the timeline for the entire process started with a wait of three days to get the offer, a month to sign the term sheet, and then four more months to get all of the paperwork in place.

What Happens Next

With the funding they have secured from Mediaquest and Kima Ventures, de Terssac says that the stake will be used to launch the Carpool Arabia app before the end of the year, and also to roll out a marketing campaign that will advertise the startup's services across Dubai.

Tips For MENA Startups When Pitching To Investors

By Carpool Arabia co-founder and Chief Driver Benjamin de Terssac

1. Don't be bogged down by the naysayers. "Never take a negative answer personally."

2. Know your investors. "Don't waste your time with people who have no interest in investing in your startup. Just move on to the next investor."

3. Keep a realistic vision. "If you plan to do crowdfunding, don't over-estimate the appetite your friends and family have toward investing in your startup."

4. Online pitches can work. "Don't listen to people who tell you never to apply online to a VC- it actually works sometimes."

Carpool Arabia co-founder and Chief Driver Benjamin de Terssac. Image credit: Carpool Arabia.
Aby Sam Thomas

Entrepreneur Staff

Editor in Chief, Entrepreneur Middle East

Aby Sam Thomas is the Editor in Chief of Entrepreneur Middle East. In this role, Aby is responsible for leading the publication on its editorial front, while also working to build the brand and grow its presence across the MENA region through the development and execution of events and other programming, as well as through representation in conferences, media, etc.

Aby has been working in journalism since 2011, prior to which he was an analyst programmer with Accenture, where he worked with J. P. Morgan Chase's investment banking arm at offices in Mumbai, London, and New York. He holds a Master's Degree in Journalism from the Columbia University Graduate School of Journalism in New York.  

Related Topics

Growing a Business

Rudy Mawer Shares 10 Ways To 10x Your Business

Learn the tactics needed to exponentially grow your revenue

Women Entrepreneur™

A Life Well Lived: Sudha Murty, Founder And Chairperson, Infosys Foundation

Insights and inspiration from the Indian educator, author and philanthropist, and the co-founder of the Infosys Foundation.

Thought Leaders

The Collapse of Credit Suisse: A Cautionary Tale of Resistance to Hybrid Work

This cautionary tale serves as a reminder for business leaders to adapt to the changing world of work and prioritize their workforce's needs and preferences.

Business News

I Live on a Cruise Ship for Half of the Year. Look Inside My 336-Square-Foot Cabin with Wraparound Balcony.

I live on a cruise ship with my husband, who works on it, for six months out of the year. Life at "home" can be tight. Here's what it's really like living on a cruise ship.

Starting a Business

Shopify's President Breaks Down the Best Ways to Grow Your Ecommerce Business

Entrepreneur magazine Editor in Chief Jason Feifer and Shopify President Harley Finkelstein discuss the best strategies to grow an ecommerce business.