Vuz, a startup known for its immersive video experiences on red carpets and football fields, raised $12 million as it doubled in its presence in Saudi Arabia and the United Arab Emirates and accelerated expansion into Africa, Asia, Asia and the United States.
The company said the prematch C financing led by International Finance Corporation (IFC) was also involved from Al Jazira Capital, a successful fund of Crosswork VC, multiple existing investors and several high-profile Saudi home offices.
International financial companies' investments are particularly noteworthy. World Bank Group members are known for investing in financial infrastructure and logistics in emerging markets, a rare bet on consumer technology, especially the so-called "immersive internet."
“They focus on emerging markets and see us as a company that focuses on expanding on a global scale and those markets. Our work and content space among creators make them very excited and based on our progress and growth, there is a lot of potential to build on that,” Zaatarah said in an interview with TechCrunch.
Vuz, formerly 360VUZ, not only competes locally; this is related to global giants such as YouTube, Tiktok, Twitch and Instagram, which have been dominated by a large user base and strong creator loyalty.
But Vuz believes it has a differentiated product: immersive 360-degree content that puts users “in the experience”, whether it’s the Grammy Awards in Los Angeles, the La Liga competition in Spain or a fashion show in Dubai. Users can consume content through mobile apps, the Web, Apple Vision Pro and Oculus, and VR headsets for smart TVs.
The company has signed exclusive immersive streaming deals with La Liga and the Professional Fighter Alliance (PFL) and is working with more than 100 content creators who have a combined audience of 100 million.
Vuz's expansion drive is a steady period of global streaming growth in mature markets. YouTube and Tiktok have mobile-first video consumption in the U.S., while Netflix and Disney+ are struggling to stir up and focus on profitability.
However, in emerging markets such as Egypt, Nigeria, Indonesia and Kenya, user growth is still accelerating, especially among young, popular audiences, interest in video and real-time content.
Zaatarah said Vuz is ready to meet this demand. The platform has more than 15 million users worldwide, up from 10 million in 2022, and now has nearly 3 billion screen access logged in, up from 1 billion at the time (we last introduced the startup). Its user base spans the Middle East, the United States, Asia and Africa.
To accelerate the U.S. drive, the company is moving from organic growth to paid marketing, aiming to transform audiences at events like Oscars and Music Premier into long-term users. Meanwhile, in Africa and Asia, Vuz is investing in local partnerships, especially with telecom operators, to expand its distribution. It has more than 40 such partnerships around the world.
Vuz's monetization model has evolved since the early days, when the platform provided about 70% of the content through advertising to earn free revenue. Now that ratio has moved to 60% free and 40% premium content, accessible via annual subscription or bundled telecom offers.
The company said revenue doubled in the past two years and gross profit increased by 80% last year. Zaatarah said that while it refused to share exact numbers, the company reached profitability in 2023.
This is partly thanks to Uber-like content models: rather than deploying large production staff, Vuz trains and journalists and creators for freelancers (usually with proprietary cameras) to shoot and upload content. Creators often deduct equipment costs from future revenue.
Additionally, the startup supports creators through its "Vuz Studio" (Vuz Studio), which helps quickly edit and package immersive content. According to Zaatarah, this saves creators hours of editing time. It also provides live trade features for creators, allowing influencers, especially female creators, to sell beauty products or fashion items directly during live streaming.
To be successful, Vuz must convince users that immersive content is not only a head, and that creators are better off making money on Vuz than Tiktok or YouTube. In parts of the Middle East and Africa, the creator economy is still early and distribution partners are important, which may be possible.
But in the United States and other developed markets, competition is even more difficult.
Still, Zaatarah believes that with a target of over 5 billion by 2026, Vuz can carve a niche by going where others are not.
“YouTube and Netflix are great, but they are not built for creators in Nairobi or Riyadh,” he said. “We are building a hyper-native product, networking and monetization model and expanding around the world.”
The scale will be the focus: The company now has offices in Saudi Arabia, the UAE, Egypt, Jordan and the United States, and actively builds teams in India and Indonesia. In Africa, Vuz already lives in Egypt, Kenya and Nigeria and said it will be launched in South Africa later this year.
“Vuz’s technological strengths and global scope are well with our mission to support scalable platforms that empower creators,” said Farid Fezoua, Director of Global Disruptive Technology, Services and Funding at IFC.