For every upcoming and even long standing startups, raising funds is very vital to keeping the startup alive and also grow the business. Nigeria’s Cars45, a large online platform for car purchase is no different in this context, as it has raised a huge sum of US$5 million in a Series A funding round.
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Cars45 is a large car purchase service that helps its customers sell their cars in a very short time. The time it take to sell the cars is what I believe its name was coined from. You’re taking a guess? Let me unlock the mystery. It takes just 45mins to sell the cars of its customers.
Now, you might help but wonder how the startups are able to detect if the car’s condition is good for sale or not. I’ll fill you in. The car owners submit the information about their cars to Cars45 for the startup to give its valuation. Once the car owner is contented with the valuation, the car owner takes the car to one of Cars45’s inspection centres for inspection.
The startup’s evaluates the car’s components, and after the car has been evaluated by the startup, the car is put up for purchase on Cars45’s online platform. The car’s details along with the digital service history are put up on the online platform for private set of buyers to access. Once there’s an offer and an agreement is made, the amount is sent to the seller’s account in 45 mins.
The CEO of Cars45, Etop Ikpe stated that handling the sale and purchase of used cars are not so efficient in Nigeria, and that Cars45 is here to reduce that deficit.
“The used-car market in Nigeria is generally a big hassle. There’s so much mistrust, no vehicle history, and not much of a structured dealer network,” said Ikpe.
He also added, “We’ve created something that changes all that, offering transparency, speed, convenience, and safety, in a highly frictional and opaque market.”
Well, the funds raised by Cars45 are from Frontier Car Group, an organization that focuses on building automobile marketpaces. The funds received by Cars45 will be used in improving the online car purchase platform.