VUZ, a social app that allows users to stream and experience immersive reality in augmented reality (XR) and dynamic digital experiences, has raised $20 million in Series B investment.
Investors in the round include Caruso Ventures, Vision VC Fund, E&Capital, Investment Pillar (formerly Etisalat Group), DFDF (Dubai Future District Fund), WIN (Webit Investment Network), SRMG, Elbert Capital and Yasta Partners. , Trust Capital, Panthera Capital. Seven existing investors also participated.
Dubai-based VUZ said this round, which saw US and EMEA-based investors on board, would be critical to its international expansion.
Founder and CEO Khalid Zatarah launched VUZ, formerly 360VUZ, as a platform to bridge the gap between the physical and virtual worlds by delivering premium immersive content to a global audience. The platform has over 20,000 hours of content spanning entertainment, creatives and sports and offers XR, VR and AR experiences anywhere in the world. According to Zatara, VUZ’s vision is to “connect people by providing truly immersive experiences by removing the constraints of travel, time and access.
Users can access and participate in a variety of content – in addition to the aforementioned live events, concerts, celebrity interviews and masterclasses via 360-degree live streams – by downloading the VUZ iOS and Android apps. 70% of the content is free and VUZ generates revenue by showing ads to users in this category. On the other hand, users are expected to pay between $4-8 for the content. The company plans to enable users to access content through other mediums: Meta/Oculus headsets, Qualcomm, immersive avatars and a web platform, Zatarah told TechCrunch.
The Web3 platform claims to have reached over 10 million users with over 1 billion screen views since its launch. Of these views, 44% are from the Middle East, 32% from the US and 24% from Egypt. VUZ said it aims to reach 3 billion views by 2023 and double its user base 2x per year. Immersive content collaborations with creators have been the driving force behind VUZ’s content, with its top creators garnering over 100 million views worldwide.
The funds will be used to fuel these plans, including improving 10% monthly recurring revenue growth, investing in content, hiring additional key senior hires, launching new social features, Web3 products and NFT projects, and property-light expansion. It will operate in 8 new international markets. The investment will see VUZ expand its Los Angeles office and scale with creators and content in the US, Asia and Europe.
“Our future plans are 10 times stronger than what we’ve been building for the past 6 years,” the CEO added. “We have built the foundation and now we are ready for sustainable expansion and growth step by step,” added Zatara.
Telecoms are betting on immersive media and see it as one of the strongest cases for 5G and the future of video streaming. Zatarah said the collaboration and integration with 45 telecom operators is the backbone behind the company’s global expansion. Dan Caruso, managing director of Caruso Ventures, said the company invested in the company because of its unique position to build a global platform and partner with top telecom operators worldwide. One such partner is newly converted UAE-based telecom operator E&; Its VC arm, E & Capital, launched a $250 million fund this week.
VUZ, which has raised over $30 million since its inception, is one of E& Capital’s leading investments in the MENA region. He said that the immersive media platform will be used to expand the infrastructure of telecom operators to countries in the Middle East and Africa.
Commenting on the investment, Kushal Shah, Head of Investment Capital, said VUZ is in line with E& Capital’s commitment to “partner with visionary technology businesses that contribute to building a better and brighter digital future. We continue to invest in the company’s success, partnering with them to achieve growth and enable meaningful growth that moves this digital world forward. He told TechCrunch that his company plans to make 20 investments in Series A and B-level startups in the MENA region.
