Founder Interview: Navigating Cross-Border Funding Opportunities with Nic Watson, CEO of Udrive

In our first Founder Interview edition of Capital Bridge, we feature Nic Watson, CEO of Udrive, a ride-sharing platform based in the UAE. Udrive has grown to become the largest vehicle-sharing platform in the country, and Nic shares his experiences of scaling a tech company in a region with an evolving VC landscape. He also offers advice on raising capital and lessons learned from Udrive's journey.

Q&A with Nic Watson, CEO of Udrive

Q: Can you share the story behind Udrive? Why did you join as CEO, and what inspired you to lead a ride-sharing platform in the UAE?

Nic Watson: Udrive was born from a frustration with the traditional car rental market. The rental experience was cumbersome, and the options for short-term rentals were limited. We wanted to give people flexibility—whether they need a car for one minute or one day. Instead of copying Western models, we built Udrive around the specific needs of the GCC.

I joined initially to help raise funds for the Series A round. My background in building tech platforms became essential, especially when COVID hit. We all had to roll up our sleeves, and that’s how I ended up becoming CEO. Udrive’s mission has always been to solve real-world problems. Despite Dubai’s modern appearance, there’s still a lot of immaturity in financial markets and mobility infrastructure. Udrive fills an important gap in that space.

Q: What are your long-term goals for Udrive in terms of geographic expansion and market positioning?

Nic Watson: Our goal is to scale across the GCC and eventually into the broader MENA region. Countries here don’t have the time or resources to develop century-old infrastructure like metros or bus systems. In the next 15 years, autonomous vehicles will be mainstream, and Udrive is positioning itself as the solution for today’s mobility needs and the future. Whether you need a car for a minute or a year, we want to be the full-stack mobility operator that drives movement in the region.

Q: As a UAE-based company, how do you see the MENA region’s role in Udrive’s growth strategy?

Nic Watson: The MENA region is crucial to our growth. While we have aspirations to expand globally, it’s important to dominate the local market first. Udrive is the largest vehicle-sharing platform in the UAE, but we’re just getting started. The population here is growing, and people are increasingly tech-savvy. They want seamless, on-demand experiences, and Udrive fits perfectly into that narrative. Plus, the UAE government is committed to being globally competitive, which creates a fertile environment for innovation.

Q: What challenges do you face with cross-border expansion, particularly in regulatory or operational aspects?

Nic Watson: We're fortunate because vehicle rental is a well-established industry, so regulations are manageable. The bigger challenge lies in innovating on customer experience and operational scale. Operations in a physical business like ours require strong teams, reliable partners, and diverse suppliers. For instance, we avoid relying on a single supplier for fleet vehicles, ensuring we can meet a range of customer preferences and avoid supply chain disruptions.

Q: How do you assess cultural and consumer behavior differences when expanding into new regions?

Nic Watson: It's all about understanding the product preferences in each market. For example, in Saudi Arabia, we learned that Chinese car brands are extremely popular. It’s not always about cultural or religious factors; it’s more about knowing what products resonate with local consumers. Our goal is to deliver a no-fear experience—customers should feel confident that their deposit won’t be held up or they won’t face outrageous fees. The core of our business is to make mobility accessible and fear-free, regardless of cultural differences.

Q: How have you approached funding for Udrive? Have you raised capital from local or international sources?

Nic Watson: All of our capital has come from within the GCC, primarily from family offices and pension funds. The VC market here is still immature, especially for Series B and beyond. Given the limited number of VC players in the region, it made more sense for us to target family offices, who control significant wealth here. We focus on building relationships with these types of investors rather than trying to fit into the limited local VC landscape.

Q: What are some of the challenges you’ve faced that are specific to the Middle East when raising capital?

Nic Watson: One of the biggest challenges is the immaturity of the VC space. Series A is typically the largest round you’ll see here, and anything beyond that is treated more like a private equity play. To raise later-stage capital, you either need to be profitable or have backing from a well-known Western VC. The region’s VC market is improving, but it’s still a long way from being as mature as Europe or the US.

Q: What advice would you give to fellow founders in the MENA region who are looking to raise capital and scale their businesses globally?

Nic Watson: Start earlier than you would in other markets. It takes longer to surround yourself with the right networks and partners here. Always assume at least a six-month timeline from starting to closing a funding round, whether you’re at seed or Series A. Securing a reputable VC for Series A is crucial because other investors will rely on them for due diligence and validation.

For anything beyond Series A, I recommend building networks in foreign markets that see the GCC as an investable region. By the time you’re at Series A+, you need product-market fit, revenue, and profitable unit economics. EBITDA isn’t always necessary, but being in a “hot” sector at the time helps.

Q: Looking back, what were the key turning points or lessons in Udrive’s journey, especially regarding scaling and capital strategy?

Nic Watson: We self-funded the first three years, which was great for retaining ownership but hurt us later when we outgrew seed-stage VCs. Today, we don’t have any VCs on our cap table, which some see as an advantage, but I think it’s a missed opportunity. VCs provide more than capital—they bring valuable introductions and connections to the next funding rounds. Relying solely on family offices limits those opportunities.

In terms of scaling, focusing on unit economics and building a viral business model was the right move. We don’t have a customer acquisition cost because the product sells itself. Udrive has become well-known because it’s easy to use, and word of mouth has driven much of our growth.

Q: How important is it for Udrive to diversify its funding sources, and how do you balance local versus global investment?

Nic Watson: Diversifying our investor pool is essential. Right now, we’re focused on family offices and private equity within the GCC. As the venture capital space matures, having a mix of regional and international investors will become increasingly important. A 30% foreign investor base would be ideal—it broadens our network and opens up new growth opportunities outside the region.

Closing Thoughts: Lessons from Udrive’s Journey

Nic Watson’s experience building Udrive offers valuable lessons for founders in emerging markets. His advice on starting early, building strong networks, and diversifying funding sources resonates with anyone looking to scale globally. As the MENA region’s VC landscape continues to evolve, startups like Udrive are well-positioned to fill critical gaps in the market and expand internationally.

At Capital Bridge by Velocity VC, we’re committed to providing more insights like these to help founders bridge the gap between local and global capital. Stay tuned for more interviews, deep dives, and actionable strategies to help your business thrive in the global marketplace.