Shekel Mobility, a platform connecting African car dealers, has secured $7 million in seed funding led by Ventures Platform and MaC VC.
The startup aims to empower auto dealers in Africa by providing them with the right capital to maximise opportunities.
In a market where 82% of dealerships are small or medium-scale, Shekel Mobility addresses the challenge of insufficient financing options, with only 2% of transactions involving institutional credit in many sub-Saharan African areas.
Founded in 2021, Shekel Mobility has facilitated over $56 million in transactions, contributing to the growth of 1,400 auto dealerships and sales of 7,000 cars.
The company, backed by Y Combinator, supports dealers in discovering, financing, and selling cars in the African used car market, focusing on a segment that constitutes 82% of the market.
To access credit through Shekel Credit, pre-approved dealers contribute a minimum of 30% of the vehicle’s value, with Shekel Mobility disbursing the remaining 70% after thorough vetting.
The startup maintains a 0% default rate by not just offering credit but also providing an operating system for dealers to manage their transactions.
With the new funding, Shekel Mobility plans to launch a product called Shekel Business, aiming to modernise informal trading operations in the auto dealership sector.