Shekel Mobility Drives Transformation in Africa's Auto Industry with $7 Million Funding Boost
In a recent report by the World Economic Forum, it was revealed that Africa's annual demand for cars and commercial vehicles stands at 2.4 million and 300,000, respectively.
This surge is attributed to a continent-wide increase in disposable income, robust middle-class growth, and rapid urbanization.
Despite this, car ownership in Africa remains at less than 45 cars per 1,000 people, significantly lower than the global average of 203 cars per 1,000 people.
Recognizing the potential in the automotive industry, innovative startups like Autochek and Moove have emerged, catering to consumers and drivers.
However, the need for tailored services for dealers has not gone unnoticed.
Vehicle financing plays a crucial role for small car dealers, facilitating daily transactions and reducing costs.
Affordable credit not only benefits dealers but also contributes to more cars on the roads across Africa.
This underscores the demand for accessible financing and business solutions tailored for car dealers.
Stepping into this strategic space is YC-backed Shekel Mobility, a B2B auto dealers marketplace that recently secured over $7 million in funding.
Comprising $3.2 million in equity and over $4 million in debt, this investment is set to catapult the startup's current ARR of slightly over $2 million.
Shekel Mobility Drives Transformation in Africa
Co-founder Benjamen Oladokun revealed in an interview that these funds will play a pivotal role in the startup's ambitious plans to quadruple its ARR and prepare for its next funding round.
Shekel Mobility, founded by Oladokun and Sanmi Olukanmi, operates at the intersection of technology and the automotive industry.
Their combined experience, including the launch and exit of Eazypapers Technologies, laid the foundation for Shekel Mobility.
The startup aims to revolutionize the $30 billion African used car market by helping car dealers find, finance, and sell cars.
At the core of Shekel Mobility's growth is its flagship product, Shekel Credit.
This offering provides auto dealers immediate access to financing, with credit limits reaching up to $200,000 for vehicle purchases in the $5,000 to $20,000 range.
The financing model involves dealers contributing 30% of the total cost, with Shekel providing the remaining 70% as a loan.
As vehicles are sold to end customers, dealers repay Shekel, covering interest on the loan and associated transaction fees.
To date, Shekel Mobility has facilitated transactions worth over $56 million, supporting the growth of over 1,400 auto dealers and transacting across 7,000 cars.
Shekel Mobility drives transformation by aiming to build the largest auto dealership ecosystem, targeting transactions amounting to $10 billion annually by 2025.
Tage Kene-Okafor / TechCrunch