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The new funds will be used to transform Egypt’s used car market, targeting $30 million in revenue by 2024.
Carzami, an Egypt-based online marketplace for second-hand cars, has raised an undisclosed pre-seed round led by Contact Financial Holding, Egypt’s largest non-bank financial service. The new funds will be used to transform Egypt’s used car market, targeting $30 million in revenue by 2024.
Founded in 2022 by Hussein Hosny and Adham Hosny, Carzami is an online marketplace for buying and selling used cars, offering 360-degree virtual tours and inspection reports. Through the platform, customers can order any car on offer to be delivered to their home to test drive, and then purchase it with a variety of financing and insurance options.
An often fragmented marketplace, the used car industry in Egypt is riddled with mistrust and lack of transparency. “We aim to change the way people buy and sell used cars by providing a seamless one-stop-shop platform that offers online buying, selling, and high-quality financing options,” Carzami's founders tell StartupScene. “Our experience is all about trust and transparency, allowing consumers to overcome the hassle of traditional dealerships.”
The new investment will be used to grow the startup’s inventory, enhance its operational technology, expand its team, and build on its vehicle financing services.
The VC ecosystem in Egypt has been recording positive growth so far this year. In H1’22 investments in Egyptian startups grew by 457% compared to H1’21, raising $156 million in the first three months of the year, which is 13% higher than the total capital invested in FY 2019 and 79% higher than that of Q4'21, according to data platform Magnitt.
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