Dubai-Based Car Rental Platform WheelsOn Raises $12.5 Million

Dubai-based autotech startup WheelsOn has closed a $12.5 million funding round to enhance its digital-first car rental experience across the UAE and the Gulf region. The round includes $2.2 million in equity from MENA-focused investors (including partners of Xploration Capital), $6.5 million earmarked for fleet expansion, and $4 million in bank financing shared among local institutions. The company’s platform is designed to eliminate common friction in car rentals - such as deposits, paperwork, and hidden fees - by owning and operating its entire fleet and managing the experience through its mobile app. Most of the new funds will go into expanding the fleet and accelerating product development, including advanced AI tools. WheelsOn plans to introduce dynamic pricing, personalised recommendations for vehicles and insurance, and digital car keys, enabling contactless vehicle takeovers via smartphones. Founded in 2023 by Nikolay Melnichuk (Xploration Capital), Adlet Shagirov, and Maxim Olivson, WheelsOn developed its approach in response to UAE renters’ frustrations with traditional car rental experiences. Catering to locals, businesses, and tourists, WheelsOn’s app supports multiple languages - including Arabic, English, Chinese, French, Italian, Spanish and German - and offers flexible rental options from budget to premium models, including chauffeured services. Looking ahead, WheelsOn aims to increase its active user base, expand its fleet, and enter other Gulf markets, capitalising on growing demand for transparent, technology-enabled mobility solutions.