Egyptian Startup MAYDAY Raises USD 20 K In First Ever Funding Round Led By VFlock
Barely four months into its official launch, Egyptian startup, MAYDAY, has secured investment of USD 20 K in an initial funding round led by VFlock, with some amount of capital from the Co-Founders also weighing in, in what is believed to be the startup’s first-ever funding round.
MAYDAY is an Egyptian startup which seeks to offer real-time roadside assistance to stranded motorists in cases of vehicle breakdown and other forms of car trouble. Through the startup’s mobile application, motorists can seek for assistance and have help come their way by way of tow trucks, tire changes, battery jumps, and a number of other services.
The platform is known to also incorporate a live location tracking feature which enables it to pinpoint the exact location of the users and also facilitate the timely dispatch of its personnel and for effective deployment of its services.
Mohamed Abo El Fotouh, one of the startup’s Co-Founders, revealed in a conversation with WeeTracker that connection with the investors was established through personal links and talks were in progress for approximately four weeks before the deal was officially signed off on and closed in August. He also offered that pursuant to the stipulations of the funding agreement, the leaders of the funding round, VFlock, are entitled to some amount of equity in the company. Mohamed, however, remains coy on the specifics of the equity agreement with his words indicating that he is not at liberty to disclose all the details at this point.
According to him, the funds will be put to use in the areas of developing the technology of the platform, enhancing and evolving its operations model, as well as expanding the team and fuelling its marketing strategy.
Remarking on the startup’s business and operations model, Mohamed offered; “MAYDAY provides roadside assistance services to motorists in need across Cairo and Giza through a mobile application that is accessible and available 24/7. MAYDAY connects the nearest service providers to motorists based on the type of service required and distance. Our services are currently available only via a subscription model with different packages that gives customers a degree of flexibility while dealing with our service and we plan to launch on-demand services in 2019.”
MAYDAY is the product of founders who have diverse backgrounds and possess expertise in such areas as marketing, computer science/engineering, and design. The idea which resulted in the creation of the platform is believed to have been triggered by the personal experience of one of the founders which informed the need for a real-time roadside assistance service — a vision that appears to be shared by the other founders and has consequently ignited a common passion.
Commenting on the plans of the business going forward, Mohamed can be quoted as saying; “MAYDAY is now focused on getting more market traction through the establishment of partnerships with different businesses who are interested in adding our range of services to their product offering, and by generating awareness around our brand within the market via strong marketing plans.” He further stated; “We are continuously working to expand our provider database and operations capabilities to ensure that we are able to maintain competitive pricing, dispatch times, and quality of service.”
Subsequent investments may also be expected in the near future as talks are believed to be currently in progress with other potential investors which could see the company land major investments within the next four to six months.