Shekel Mobility receives USD 7 million in funding to revolutionize African car trading. Ventures Platform and MaC VC lead the investment seeking market expansion and innovation.
Shekel Mobility, the B2B trading platform catering to African car dealers, has successfully secured a USD 7 million seed investment in its latest funding round. The company was founded by Benjamen Oladokun and Sanmi Olukanmi. With USD 3.2 million in equity and over USD 4 million in debt, Ventures Platform and MaC VC lead this strategic investment, aiming to propel Shekel Mobility’s expansion into new African markets while fostering innovation within the platform.
Capitalizing on the Nigerian market
Focusing on Nigeria, recognized as Africa’s largest used car market valued at USD 10 billion, Shekel Mobility strategically positions itself to capitalize on Nigeria’s continuous economic growth, positioning as a key player in this lucrative market.
The Nigerian used car market boasts a significant scale, with an annual sale of over 1 million used cars. Forecasts from a 2022 Statista report suggest a prospective escalation of the Nigerian used car market to a value of USD 1.3 billion by 2025. However, Africa’s car ownership remains notably lower than the global average, standing at fewer than 45 cars per 1,000 people. Despite burgeoning demand, car ownership is significantly lower than the global average. Unlike consumer-focused solutions Shekel Mobility focuses on providing tailored solutions for vehicle sellers in Africa, addressing challenges like transparency, sourcing, and complex paperwork.
The Shekel Mobility platform
Shekel Mobility strategically tackles the predominantly offline and fragmented African market landscape by offering a centralized online platform. With detailed listings, 360-degree photos, and immersive virtual reality tours, the platform connects buyers and sellers seamlessly, ensuring a transparent and efficient transaction process.
At the core of Shekel Mobility’s growth is its flagship offering, Shekel Credit. This unique service offers immediate financing to auto dealers, providing credit limits of up to USD 200,000 for vehicle acquisition. The financing structure, with a 30% contribution from the dealer and 70% covered by Shekel, ensures a streamlined process, contributing to the expansion of over 1,400 auto dealerships.
Marlon Nichols, Founder, and Managing Partner at MaC Venture Capital, expressed enthusiasm for Shekel Mobility’s potential to revolutionize Africa’s automotive industry. Emphasizing the team’s role in stimulating substantial financial movement within the Nigerian economy, Nichols sees Shekel Mobility as a key player in providing affordable automobiles to locals.