VUZ, a pioneering startup specializing in immersive video experiences, has secured $12 million in funding, intensifying its presence in Saudi Arabia and the United Arab Emirates while accelerating expansion into Africa, Asia, and the United States.

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

Notably, IFC’s investment marks a rare foray into consumer tech, particularly in the realm of immersive internet. As a member of the World Bank Group, IFC typically focuses on investing in financial infrastructure and logistics across emerging markets.

In an interview with TechCrunch, founder and CEO Khaled Zaatarah expressed his enthusiasm for IFC’s investment, stating, “They are focused on emerging markets and recognized our potential for global scaling. Our work in the creators and content space excited them, and we’re eager to build upon our progress and growth.”

VUZ operates in a competitive landscape, vying with giants like YouTube, TikTok, Twitch, and Instagram, which boast massive user bases and strong creator loyalty. However, the company believes its unique selling proposition lies in its immersive, 360-degree content, which transports users “inside the experience,” whether it’s a high-profile event like the Grammys or a La Liga match.

Users can access VUZ’s content through various platforms, including mobile apps, the web, VR headsets like Apple Vision Pro and Oculus, and smart TVs. The company has secured exclusive immersive streaming deals with La Liga and the Professional Fighters League (PFL) and collaborates with over 100 content creators, whose combined audience reach exceeds 100 million.

VUZ had previously raised $20 million in a Series B funding round in 2022. The company’s expansion push coincides with a period of plateauing growth in mature markets, where streaming giants like YouTube and Netflix are focusing on profitability and combating churn.

Streaming goes local, but still global

In contrast, emerging markets like Egypt, Nigeria, Indonesia, and Kenya are experiencing accelerated user growth, particularly among younger, mobile-savvy audiences with a strong appetite for video and live content. Zaatarah believes VUZ is poised to capitalize on this demand, having crossed 15 million users globally and logging nearly 3 billion screen views.

To accelerate its U.S. expansion, VUZ is shifting its strategy from organic growth to paid marketing, aiming to convert viewers of high-profile events into long-term users. In Africa and Asia, the company is investing in local partnerships, particularly with telecom operators, to expand its distribution network, which currently boasts over 40 partnerships globally.

VUZ’s monetization model has evolved, with a growing focus on premium content. The platform now offers 60% of its content for free and generates revenue through a combination of ads and subscription-based models. The company has doubled its revenue over the past two years and posted an 80% increase in gross profit last year, achieving EBITDA profitability in 2024.

VUZ’s content model is designed to be cost-effective, with a network of freelance reporters and creators equipped with proprietary cameras to produce and upload content. The company also supports creators through its “VUZ Studio,” which provides editing and packaging services, and offers live commerce features, enabling influencers to sell products directly during live streams.

To succeed, VUZ must convince users of the value of immersive content and persuade creators that monetizing on the platform is more lucrative than on rival platforms like TikTok or YouTube. While competition is fierce in developed markets, Zaatarah believes VUZ can carve a niche by catering to underserved markets and providing a hyper-local product with global scalability.

“YouTube and Netflix are great, but they’re not building for creators in Nairobi or Riyadh,” Zaatarah said. “We’re building a product, network, and monetization model that’s hyper-local, with the infrastructure to scale globally.” VUZ is actively expanding its presence, with offices in Saudi Arabia, the UAE, Egypt, Jordan, and the U.S., and is building teams in India and Indonesia.

Farid Fezoua, IFC Global Director for Disruptive Technologies, Services, and Funds, commented, “VUZ’s tech edge and global reach align well with our mandate to support scalable platforms that empower creators.” As VUZ continues to grow and expand, it remains focused on its mission to provide immersive, high-quality content to a global audience.