Nigeria’s largest car buying service, Cars45 has raised a whopping US$5 million in a Series A funding round to improve its online car buying and selling platform, according to this TechCrunch report.
Launched in 2016, Cars45 seeks to help hundreds of customers sell their cars in 45 minutes in a safe, fast and smart way.
Its online platform allow car owners enter their vehicle’s information for a free valuation. If they’re satisfied with the price, they can then book an appointment at one of Car45’s inspection centres for physical inspection of the vehicle.
If the car passes the startup’s multi-point physical evaluation, which includes engine, brakes, tires and road testing, an offer is made, and once an agreement is reached the money is wired to the seller in 45 minutes.
Thereafter, the vehicle is displayed on Car45’s online platform, complete with new pricing and a digital service history, which is accessed by a private network of buyers.
Although Cars45’s value, sales volume or revenue statistics weren’t disclosed, the startup stated it has been actively buying and selling used cars since launch. It makes money from fees charged its buyers, and plans to introduce other revenue streams in the future.
The fresh funds, raised from Frontier Car Group, which builds and runs marketplaces focused on emerging markets in the auto sector, will be used to improve its online buying and selling platform.
“The used-car market in Nigeria is generally a big hassle. There’s so much mistrust, no vehicle history, and not much of a structured dealer network,” said Etop Ikpe, Cars45’s CEO.
He added, “We’ve created something that changes all that, offering transparency, speed, convenience, and safety, in a highly frictional and opaque market.”