VUZ Secures $12 Million in Funding for Global Expansion
Innovative Startup to Enhance Presence in Saudi Arabia and UAE While Targeting New Markets
VUZ, a pioneering startup renowned for its immersive video experiences from prestigious events like red carpets and football matches, has successfully raised $12 million in a pre-Series C funding round. The company plans to intensify its operations in Saudi Arabia and the United Arab Emirates, while also exploring new opportunities in Africa, Asia, and the United States.
Major Investors Fuel Growth
The funding round was spearheaded by the International Finance Corporation (IFC), a member of the World Bank Group, marking a significant investment in consumer technology focused on immersive experiences. Other major contributors included Al Jazira Capital, CrossWork VC’s Success Fund, several existing investors, and notable Saudi family offices.
Khaled Zaatarah, the founder and CEO of VUZ, emphasized the importance of the IFC’s investment, highlighting their focus on emerging markets. He stated, "They recognized our potential for global scaling and were particularly excited about our advancements in the content and creator space."
Competing Against Industry Leaders
VUZ, formerly known as 360VUZ, is strategically positioning itself against established platforms like YouTube, TikTok, Twitch, and Instagram. Unlike these competitors, VUZ offers unique 360-degree content that immerses users in experiences from the Grammys in Los Angeles to La Liga matches in Spain, and fashion shows in Dubai. Users can access this content across various devices, including mobile apps, web browsers, VR headsets like Apple Vision Pro and Oculus, and smart TVs.
The startup previously raised $20 million in a Series B funding round in 2022 and has secured exclusive streaming agreements with major organizations such as La Liga and the Professional Fighters League (PFL). VUZ currently collaborates with over 100 content creators whose collective audience exceeds 100 million.
Local Expansion Amidst Global Streaming Challenges
While global streaming platforms are seeing stagnant growth in mature markets, VUZ is seizing opportunities in emerging regions like Egypt, Nigeria, Indonesia, and Kenya, where user engagement is on the rise, particularly among younger, tech-savvy demographics.
Zaatarah noted that VUZ has expanded its global user base to 15 million, up from 10 million last year, with nearly 3 billion screen views recorded, an increase from 1 billion. This growth reflects its presence in the Middle East, the U.S., Asia, and Africa.
Shifting Focus to Paid Marketing
To propel its expansion in the U.S. market, VUZ is transitioning from organic growth strategies to paid marketing, intending to convert viewers of high-profile events into long-term users. In Africa and Asia, the company is prioritizing local partnerships with telecom operators, having established over 40 partnerships worldwide.
Monetization Model Evolution
The monetization strategy of VUZ has evolved significantly since its inception, with its current model comprising 60% free content and 40% premium offerings. Users can access premium content through annual subscriptions or bundled telecom packages. VUZ has reported a doubling of revenue over the last two years and an 80% increase in gross profit last year, achieving EBITDA profitability in 2024.
VUZ’s operational model closely resembles that of Uber, leveraging freelance creators equipped with proprietary technology for content production. This approach allows for greater flexibility and cost efficiency, where equipment costs can be deducted from future earnings of the creators.
Supporting Content Creators
To aid creators, VUZ launched the “VUZ Studio,” an in-house team designed to expedite content editing and packaging. This initiative significantly reduces the editing workload for creators and introduces features like live commerce, enabling influencers to sell products during live streaming sessions.
Navigating Competitive Markets
To thrive in the competitive landscape, VUZ faces the challenge of demonstrating the value of immersive content compared to established platforms like TikTok and YouTube. However, its focus on hyper-localized services tailored to regions such as the Middle East and parts of Africa could provide a unique advantage.
Zaatarah believes the company is well-positioned to capture a niche market by offering tailored solutions that existing platforms may overlook. VUZ aims to accumulate over 5 billion views by 2026, with ongoing expansions that include establishing offices in Saudi Arabia, the UAE, Egypt, Jordan, and the U.S., while actively recruiting in India and Indonesia.
Farid Fezoua, the IFC’s Global Director for Disruptive Technologies, Services, and Funds, stated, "VUZ’s technological prowess and global outreach align perfectly with our mandate to support scalable platforms that uplift creators."
As VUZ continues to innovate and expand, the startup is set to redefine immersive experiences in the digital age while fostering new opportunities for creators across the globe.
