Saudi used-car platform Carly takes Pinnacle investment in primary-secondary deal

Saudi automotive commerce platform Carly has received an investment from Pinnacle Growth & Secondary Fund through a combination of primary capital and secondary share purchases.

Neither side disclosed the size of the transaction, Carly’s valuation or how much of the investment went into the company versus existing shareholders.

The deal is the first investment announced by Pinnacle’s new growth and secondaries vehicle, which FWDstart reported on last month. The closed-ended fund is targeting established Saudi technology companies through a mix of new funding rounds and purchases from existing shareholders, with a particular focus on fintech, e-commerce, health and businesses tied to Riyadh’s growth, including mobility and urban services.

Carly fits fairly neatly into the latter.

Founded in 2021 by Faisal Raza and Yousef Al-Hagbani, the Riyadh-based company operates an online marketplace for new and used cars, covering search and comparison through to financing, purchase and delivery. Used vehicles listed through Carly undergo a 150-point inspection and are offered with a 12-month warranty.

The company raised SAR 3.75 million, around $1 million, from angel investors in a pre-seed round in 2023, when it was still focused primarily on digitising the used-car buying and selling process. It said at the time that the funding would go towards product development, hiring and launching a B2B auction platform for dealers.

By 2024, Raza said between 30% and 40% of Carly’s sales were being completed entirely online, including financing and delivery without customers visiting its physical hub.

Carly hasn’t disclosed more recent revenue, sales volumes or customer numbers alongside the Pinnacle investment, saying only that its customer base and transaction volumes have continued to grow.

Which shareholders participated in the secondary transaction or how much ownership changed hands also was not disclosed.