CarZar, the second-hand car online market place backed by Silvertree Capital, has received an additional $1.5 million in expansion capital from Vostok New Ventures, a NASDAQ Stockholm-listed venture capital company. Terms of the investment, which was part of a larger round, were not disclosed.
The fresh capital will be used to boost the startup’s marketing and recruitment initiatives. Founded in 2016, the company has reportedly grown extensively. Both cost and obligation-free to consumers selling second hand cars, the online marketplace allows people to enter details about their car to get a price estimate based on CarZar’s proprietary algorithm. If happy with the quote, the seller takes the vehicle to one of CarZar’s inspection stations where a final offer is made. The sale can then be settled quickly, with instant payment to the seller and completion of requisite paperwork being handled by CarZar.
Jose Fernandez, one of CarZar’s joint Managing Directors, identified consumer education as being one of the firm’s biggest challenges. “South Africans are proving to be ready to welcome new ways of getting “stuff done”,” he said. “With the local market being extremely diverse and the auto industry being among the most traditional ones, South Africans are still familiarising themselves with new ways of selling their vehicles.”
The investment is the latest in a line of many online tech-brand deal undertaken by Vostok New Ventures, which was founded in 2007. These have included BlaBlaCar, a leading long-distance ride sharing service, Gett, an on-demand taxi hailing service available in Israel, Russia, UK and New York City, babylon, a leading AI-driven digital healthcare company as well as Avito, Russia’s leading online classifieds company.