Shekel Mobility secures $7M to drive vehicle financing in Africa

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The African car dealership market is largely composed of small and medium-scale dealerships, making up approximately 82% of the sector. These dealerships often face challenges in providing affordable prices for used cars due to limited financing options. In comparison, other emerging markets globally, such as Brazil, India, Indonesia, Malaysia, and significant parts of Latin America, typically witness institutional credit accounting for 65% to 70% of automotive transactions. However, in most areas of sub-Saharan Africa, this figure is less than 2%, as noted by Shekel Mobility. While mobility fintech companies are emerging across the continent to address vehicle financing challenges, their focus tends to be on established car dealers, representing only 18% of the car dealership market, or on individual consumers. Bridging this financing gap for small and medium-scale dealerships is crucial for fostering growth and affordability in the African automotive market. Sheke Mobility operates in the same space with other mobility startups like Autochek and Moove, who are addressing vehicle ownership by serving consumers and drivers, respectively through financing.