Silvertree Capital, the investment arm of Silvertree Internet Holdings, has invested in another South African startup. Carzar, an online marketplace for the second-hand car market, provides its users with a secure, convenient way to see their previously-owned vehicles. Neither the amount of capital invested nor the valuation terms were disclosed.
Earlier this year, Silvertree announced that it had earmarked $10 million for investment in African e-commerce and tech startups, double the amount the consumer internet investment had made in 2015. At the time, the company stated it would look for deals anywhere from $500,000 up to several million dollars in size in long-term opportunities.
The Carzar investment fits well with Silvertree’s overall investment strategy. The company offers a solution that addresses a large market, tapping into and improving an existing customer need without having to spend significantly on marketing to change customer behavior. This large market, with an attractive economic profile, a strong management team and significant traction were all key factors in Silvertree’s decision to back the company.
Silvertree will be taking a seat on the new portfolio company’s board. As with most deals, the principals of the firm collaborated on the transaction, which will now fall into Silvertree’s e-commerce vertical, a sector where Peter Allerstorfer nominally concentrates most of his time.
Silvertree’s in-house legal team worked extensively on the transaction with support from Werkmans Attorneys.