Dubai-based car rental startup WheelsOn has closed a <head>2.5 million funding round that combines $2.2 million in equity from a group of investors, including the founders of London-based Xploration Capital, $6.5 million for fleet expansion, and $4 million in bank financing. The deal values the two-year-old company at nearly $30 million.Founded in 2023 by Nikolay Melnichuk, Adlet Shagirov, and Maxim Olivson, the UAE startup operates a deposit-free car rental platform that aims to eliminate traditional pain points like security deposits, hidden fees, and paperwork. The funding structure reflects the capital-intensive nature of the car rental business, with the majority of funds earmarked for expanding the vehicle fleet.WheelsOn differentiates itself from competitors by owning and operating its entire fleet rather than acting as an aggregator platform. The company currently manages over 200 vehicles across 15 brands, with rental periods ranging from single days to full years. Vehicles in the fleet include models like the Audi Q3 Sportback (369 AED per day), Chevrolet Tahoe RST (353 AED per day), and Hyundai Staria van (398 AED per day).The startup’s technology platform enables real-time fleet monitoring and proactive maintenance scheduling, which the company says allows it to eliminate security deposits that typically range from hundreds to thousands of dirhams in the UAE market. The platform also supports multiple languages including English, Arabic, Chinese, and several European languages to serve the country’s diverse population.WheelsOn plans to use the fresh capital to develop AI-powered features including dynamic pricing algorithms and personalized vehicle recommendations. The company is also working on digital car key technology that would allow customers to unlock rental vehicles directly through their smartphones.The car rental market in the UAE has traditionally been dominated by established players requiring significant upfront deposits and lengthy paperwork processes. WheelsOn’s approach targets both residents seeking flexible monthly rentals and tourists looking for streamlined airport or hotel delivery services.The company’s mobile app handles the complete rental process digitally, from registration to vehicle return. WheelsOn provides 24/7 roadside assistance and manages all aspects of fleet operations including insurance, maintenance, and delivery services.WheelsOn aims to expand beyond the UAE to other Gulf markets where similar rental market inefficiencies exist. The company expects to significantly increase both its fleet size and customer base over the next few years as demand for transparent, flexible rental services continues to grow in the region.AuthorRecent Posts Post Views: 2,458