Africa’s startup boom is moving into the used-vehicle space. Nigeria based Cars45.com raised a $5 million Series A round from the Frontier Cars Group, a holding company whose backers include Balderton Capital, EchoVC, TPG Growth, and NEA.
Cars45 will deploy the capital to improve its platform that buys, sells, prices, and rates the condition of pre-owned autos.
“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 Cars45 CEO Etop Ikpe. “We’ve created something that changes all that, offering transparency, speed, convenience, and safety, in a highly frictional and opaque market.”