Founders Of Recently Acquired Egyptian Startup Receive Pre-seed Investment For New Used Car Platform Carzami
Carzami, an online retailer for quality used cars and vehicle financing, has completed a pre-seed round led by Contact Financial Holding, as well as the establishment of a scalable inventory financing facility, which it intends to use to transform Egypt’s used car market, with a revenue target of $30 million by 2024.
Carzami will be able to unveil its revolutionary model for a digital auto dealership while also providing vital vehicle finance and insurance alternatives thanks to this big investment from Contact, Egypt’s largest non-bank financial services provider.
Carzami intends to use the funds to expand its inventory. Carzami is also trying to grow its fleet of delivery transporters, improve its operating technologies, establish a productive staff, and construct a contemporary reconditioning facility. Importantly, Carzami will use the funds to improve organisational efficiency and expand existing operations such as auto finance.
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Why The Investor Invested
The backgrounds of the founders were instrumental in this fundraising. Hussein Hosny and Adham Hosny both have substantial automobile experience. Both founders founded Sa3ar which was recently acquired by Contactcars.com, a subsidiary of Contact Financial Holding. Sa3ar is Egypt’s first data pricing engine for used automobiles, which is now also a partner in Carzami.
Hazem Moussa, Chairman of Contact Financial Holding, stated that “Our faith in digitizing the automotive market in Egypt has been with us from our early years, we launched contactcars.com in 2002 as the first car marketplace and community for both new and used cars. In addition, Contact pioneered financing of used cars over 10 years ago, now we believe we can support Carzami in its quest to re-invent the used car purchase experience”.
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Said Zater, CEO of Contact Financial Holding added “Our support to Carzami comes as a part of our continuous effort to connect with the startup scene in all aspects we can complement their work with. We believe in the ongoing digitization of services led by exciting startups like Carzami”.
A Look At What The Startup Does
Hussein Hosny and Adham Hosny co-founded Carzami in 2022 with the goal of fixing the Egyptian used car market by providing consumers with an online platform offering certified and reconditioned used cars with 360-degree virtual tours and inspection reports. Customers may order any automobile they want to test drive and then purchase with finance and insurance choices delivered to their home.
Carzami seeks to obtain a competitive advantage by offering great services and increasing consumer trust. This will be accomplished by launching the 30-day Carzami Protection Program and a 7-day “Test to Own” service, in which potential customers may test drive a car for 7 days/200 kilometres before making a decision. Finally, consumers have the option of receiving a complete refund or trading in their item for another. Carzami’s goal here is to ensure that customers get good value for their money. Carzami aspires to be a pioneer in the used automobile sector by providing clients with first-rate services.
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Carzami Founders, Hussein Hosny & Adham Hosny, commented, “We aim to change the way people buy and sell used cars by providing a seamless one-stop-shop platform that offers online buying, selling, and high-quality financing options. Our experience is all about trust and transparency, allowing consumers to overcome the hassle of traditional dealerships”.
Carzami aims to be an industry leader in the region for vehicle demands and needs, with additional team knowledge from BMW, Mercedes, and Porsche.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard. You can book a session and speak with him using the link: https://insightsbyexpert