Carzami Raises Equity, Debt Funding
The Egypt-based startup is an online retailer for quality used cars and vehicle financing.
Carzami announced the close of a pre-seed round led by Contact Financial Holding, together with a scalable inventory financing facility, which it plans to use to transform Egypt’s used car market targeting $30 million in revenue by 2024.
With this strategic investment from Contact, Egypt’s largest non-bank financial services provider, Carzami is positioned to launch its innovative model for a digital car dealership while offering crucial vehicle financing and insurance options.
Carzami aims to fix the Egyptian used car market by providing consumers with an online platform offering certified and reconditioned used cars with 360-degree virtual tours and inspection reports. Customers can order any car they like to be delivered to their doorstep to test drive and then purchase with financing and insurance options.
Carzami said it understands that the fragmentation and mistrust that characterizes the used car industry is unconducive for business growth. With the funding, Carzami seeks to continue growing its inventory.
Along with that, Carzami is looking to expand its fleet of delivery hauliers, enhance its operational technology, build a productive team, and build a modern reconditioning facility. Importantly, Carzami will utilize the funding to optimize their organizational efficiency and make on existing functions, such as vehicle financing.
Carzami hopes to gain an advantageous edge over its competitors by providing exceptional services and building on its consumer trust. This will be achieved by premiering the 30-day Carzami Protection Program and a 7-day “Test to Own” service where potential buyers can try out a vehicle for seven days/200km to conclude. Ultimately, they can get a full refund or trade in with another. Here, Carzami aims to ensure that consumers get value for their money. Carzami seeks to become a pioneer in the used car industry by offering consumers top-of-the-line services.
Hazem Moussa, Chairman of Contact Financial Holding, stated: “Our faith in digitizing the automotive market in Egypt has been with us from our early years; we launched contactcars.com in 2002 as the first car marketplace and community for both new and used cars. In addition, Contact pioneered financing of used cars over ten years ago, and now we believe we can support Carzami in its quest to re-invent the used car purchase experience”.
Said Zater, CEO of Contact Financial Holding, added: “Our support to Carzami comes as a part of our continuous effort to connect with the startup scene in all aspects we can complement their work with. We believe in the ongoing digitization of services led by exciting startups like Carzami.”
Hussein Hosny & Adham Hosny Carzami Founders commented: “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. Our experience is about trust and transparency, allowing consumers to overcome the hassle of traditional dealerships”.