Dubai’s WheelsOn Secures $12.5M to Expand Deposit-Free Car Rentals
▼ Summary
– WheelsOn has raised $12.5 million in funding, combining equity, fleet expansion capital, and bank financing, valuing the company at nearly $30 million.
– The startup operates a deposit-free car rental platform that eliminates security deposits, hidden fees, and paperwork, differentiating itself by owning its entire fleet.
– Its technology enables real-time fleet monitoring, proactive maintenance, and supports multiple languages, with vehicles ranging from daily to yearly rentals.
– The company plans to use the funding to develop AI features like dynamic pricing and digital car key technology for smartphone access.
– WheelsOn aims to expand beyond the UAE to other Gulf markets, targeting both residents and tourists with its flexible, transparent rental services.
Dubai’s innovative car rental service WheelsOn has successfully raised $12.5 million in a recent funding round, marking a significant milestone for the young company. This financial boost includes $2.2 million in equity from investors such as the founders of London’s Xploration Capital, $6.5 million dedicated to expanding its vehicle fleet, and an additional $4 million in bank financing. The deal places the company’s valuation at close to $30 million, reflecting strong investor confidence in its unique business model.
Established in 2023 by Nikolay Melnichuk, Adlet Shagirov, and Maxim Olivson, WheelsOn operates a deposit-free car rental platform designed to remove common customer frustrations like security deposits, hidden charges, and cumbersome paperwork. The funding structure highlights the capital-heavy demands of the car rental industry, with the bulk of investment directed toward growing the company’s owned fleet.
Unlike many competitors that serve as aggregators, WheelsOn owns and manages its entire fleet, offering greater control over quality and service. The company currently oversees more than 200 vehicles spanning 15 different brands, with rental options available from as little as one day up to a full year. Popular models include the Audi Q3 Sportback at 369 AED per day, the Chevrolet Tahoe RST for 353 AED, and the Hyundai Staria van priced at 398 AED daily.
A key element of WheelsOn’s appeal is its proprietary technology platform, which supports real-time fleet tracking and proactive maintenance. This system allows the company to confidently waive security deposits, which often run into thousands of dirhams in the UAE market. The platform is also multilingual, supporting English, Arabic, Chinese, and several European languages to accommodate the diverse demographic of the region.
With the new capital, WheelsOn intends to develop AI-powered features such as dynamic pricing models and tailored vehicle suggestions. The company is also advancing digital car key technology that would enable customers to access rental cars directly through their smartphones, further simplifying the user experience.
The UAE car rental sector has long been characterized by major deposits and extensive paperwork, dominated by traditional providers. WheelsOn’s modern approach appeals to both residents in need of flexible monthly arrangements and tourists seeking convenient airport or hotel delivery.
Through its mobile application, the company manages the entire rental process digitally, from initial sign-up to final vehicle return. Services include round-the-clock roadside assistance, and WheelsOn handles all operational aspects like insurance, maintenance, and logistics.
Looking ahead, WheelsOn has plans to expand into other Gulf markets where similar inefficiencies in car rental persist. The company anticipates substantial growth in both its fleet numbers and customer base in the coming years, as demand for transparent, hassle-free rental options continues to rise across the region.
(Source: MENAbytes)
