Shekel Mobility secures $7M to drive vehicle financing in Africa
Shekel Mobility, a Nigerian startup backed by Y Combinator, has successfully raised $7 million in a seed round, comprising $3.2 million in equity and over $4 million in debt. The funds will be strategically deployed to fuel growth in its Annual Recurring Revenue (ARR) as the company prepares for its next funding round.
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. Earlier this year, the startup secured a $1.95 million pre-seed investment, with support from Ventures Platform, Y Combinator, Voltron Capital, and Zedcrest.
The recent seed round was co-led by Ventures and MaC Venture Capital, with participation from a diverse group of investors. The debt component of the funding was provided by Zedvance, VFD Microfinance Bank, Zenith Bank, Fluna, and others. Some of these entities have utilized Shekel Mobility's platform for financing auto dealerships, showcasing the startup's impact on the financial ecosystem.
Points clés à retenir
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.