Vuz Secures $12M Funding for Immersive Video Platform

VUZ Secures $12 Million to Expand Immersive Video Platform

VUZ, a company specializing in delivering captivating video experiences from prominent events like red carpets and sporting competitions, has successfully secured $12 million in funding. This investment will fuel the company’s growth in Saudi Arabia and the United Arab Emirates, while simultaneously accelerating its expansion into Africa, Asia, and the United States.

The pre-Series C funding round was spearheaded by the International Finance Corporation (IFC), with significant contributions from Al Jazira Capital, CrossWork VC’s Success Fund, existing investors, and several prominent Saudi family offices.

IFC’s Strategic Investment

The involvement of the IFC is particularly noteworthy. Recognized for its investments in financial infrastructure and logistics within developing economies, the World Bank Group member is making an unusual investment in consumer technology, specifically the emerging “immersive internet” sector.

Founder and CEO Khaled Zaatarah explained in an interview with TechCrunch that the IFC was drawn to VUZ’s focus on global scaling, particularly within emerging markets. He stated their enthusiasm stemmed from the company’s work with creators and content, and the substantial potential for future development based on current progress.

Competition in the Immersive Video Landscape

VUZ faces competition not only on a local level but also from established global platforms such as YouTube, TikTok, Twitch, and Instagram, all of which boast extensive user bases and strong creator relationships.

However, VUZ differentiates itself by offering immersive, 360-degree content that places viewers “inside the experience,” whether it’s attending the Grammys in Los Angeles, a La Liga game in Spain, or a fashion show in Dubai. Content is accessible via mobile applications, web browsers, VR headsets including Apple Vision Pro and Oculus, and smart televisions.

Having previously raised $20 million in a Series B round in 2022, VUZ has established exclusive streaming partnerships with La Liga and the Professional Fighters League (PFL). The company collaborates with over 100 content creators, collectively reaching an audience exceeding 100 million.

Streaming Trends: Local Focus with Global Ambitions

VUZ’s expansion strategy is unfolding as growth in global streaming services is leveling off in established markets. While YouTube and TikTok dominate mobile video consumption in the U.S., Netflix and Disney+ are concentrating on profitability and mitigating subscriber churn.

Conversely, emerging markets like Egypt, Nigeria, Indonesia, and Kenya are experiencing continued user growth, especially among younger, mobile-first audiences who actively seek video and live content.

Zaatarah asserts that VUZ is well-positioned to capitalize on this demand. The platform has grown to over 15 million users worldwide, an increase from 10 million in 2022, and has accumulated nearly 3 billion lifetime screen views, doubling from 1 billion previously. Its user base spans the Middle East, the U.S., Asia, and Africa.

To bolster its presence in the U.S., the company is transitioning from relying on organic growth to implementing paid marketing strategies, aiming to convert viewers of major events into loyal, long-term users. Simultaneously, VUZ is investing in local partnerships, particularly with telecommunication companies, to broaden its distribution network in Africa and Asia, currently totaling over 40 such partnerships globally.

Evolving Monetization and Financial Performance

VUZ’s revenue model has evolved over time. Initially, the platform offered approximately 70% of its content free of charge, generating revenue through advertising. Currently, the ratio has shifted to 60% free content and 40% premium content, accessible through annual subscriptions or bundled telecom packages.

The company reports a doubling of revenue over the past two years and an 80% increase in gross profit last year. While specific financial figures were not disclosed, Zaatarah confirmed that the company achieved EBITDA profitability in 2024.

This profitability is partially attributed to a content model similar to Uber, where VUZ trains and equips freelance reporters and creators, often providing proprietary cameras, to produce and upload content. Creators may have the cost of equipment deducted from their future earnings.

Supporting Creators with VUZ Studio

Furthermore, VUZ provides support to creators through its “VUZ Studio,” an internal team dedicated to efficiently editing and packaging immersive content. Zaatarah highlights that this service saves creators significant editing time. The platform also offers live commerce features, enabling influencers, particularly female creators, to sell products like beauty items and fashion directly during livestreams.

To achieve success, VUZ must demonstrate to users that immersive content offers more than just a novelty and convince creators that the platform provides superior monetization opportunities compared to TikTok or YouTube. This may be attainable in the Middle East and parts of Africa, where the creator economy is still developing and distribution partnerships are crucial.

However, competition is more intense in the U.S. and other developed markets.

Despite these challenges, Zaatarah is confident that VUZ, aiming for over 5 billion lifetime views by 2026, can establish a unique position by focusing on underserved areas.

“YouTube and Netflix excel, but they aren’t specifically catering to creators in Nairobi or Riyadh,” he stated. “We are developing a product, network, and monetization system that is highly localized, while possessing the infrastructure for global scalability.”

Global Expansion and Future Outlook

The company’s global reach is expanding, with offices currently located in Saudi Arabia, the UAE, Egypt, Jordan, and the U.S. Teams are actively being built in India and Indonesia. In Africa, VUZ is already operational in Egypt, Kenya, and Nigeria, with plans to launch in South Africa later this year.

“VUZ’s technological advantages and global reach align perfectly with our mission to support scalable platforms that empower creators,” added Farid Fezoua, IFC global director for Disruptive Technologies, Services, and Funds.