Cars45 has expanded its footprint to Ghana and Kenya, weeks after its parent company Frontier Car Group closed a $400m Series D funding round.
FCG, which operates in 10 countries, including Nigeria, is an online market for used cars. The company operates primarily in emerging markets where low disposable income means that new cars are beyond the financial reach of a majority of people.
The company differentiates itself from other used car dealers by performing inspections on all vehicles and grading these vehicles when they are listed. The Grades A-E suggest the condition of the vehicles, making it easy for prospective customers to sift through their listing.
The move into Ghana and Kenya hardly marks the end of their expansion efforts in Africa, with reports that the company will likely launch in other African cities in 2020.
According to Etop Ikpe, CEO and co-founder of Cars45, “We want to connect buyers and sellers across the continent in the most seamless way, taking the stress out of the trading experience. After successfully establishing ourselves in Nigeria, expanding into Ghana and Kenya made perfect sense as the ideal next step as we build a transparent and fair structure for trading cars on the continent.
Ikpe added that “the process of buying and selling cars today can be complicated, time-consuming and needlessly expensive. We want to put an end to that by providing an easy and convenient way for consumers across Africa to make what is often the most significant financial transaction of their lives.
Used cars are among the leading imports on the continent. The 2016 Deloitte report revealed that Africa imports account about four times more automotive products than it exports, with automotive imports worth $48 billion as of 2014.
The automotive market, Cars45, sees the potential market with its online trading platforms with additional expansion into African markets in 2020.
With more than 9 million used cars traded annually, Cars45 believes its platform will link buyers and sellers using its marketplace.