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Silvertree backs local auto marketplace CarZar

Silvertree Capital, the investment arm of Silvertree Internet Holdings, has invested in another South African startup. CarZar, an online marketplace for second-hand cars, 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.

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