Stellantis and Africar launch Auto24, an online marketplace for used cars

In partnership with Stellantis, the parent company of Maserati, Peugeot, Fiat, and Chrysler, Africar has launched Auto24, an online used car marketplace in over 40 African countries. In the upcoming quarters and years, Africar plans to expand Auto24 across the continent.

Africa has about 50 million cars, accounting for only 1% of the total number of cars worldwide, according to a report by the International Organisation of Motor Vehicle Manufacturers (OICA). According to the UN, the continent’s population will reach almost 1.7 billion by 2030.

In Africa, there is potential for the automotive industry due to the falling price of used cars worldwide and increasing demand for imported used cars. According to Stellantis’ Senior Vice President of Pre-Owned Vehicles, Xavier Duchemin, “this investment in Africar Group reinforces our strategy to grow our used vehicle business globally in a bold, pragmatic, and agile manner.” As with the other Stellantis investments in the used vehicle ecosystem, it will follow the same blueprint. While capitalizing on Stellantis, the founders will maintain the inventiveness, energy, and agility that characterize start-ups.”

joel langlat and axel peyriere picture

  Through its online channels, The Africar Group has enabled over 25 million car buyers and sellers to trade used cars, slowly establishing itself as Africa’s leading online car marketplace.

Africar’s CEO and co-founder Axel Peyriere said of the partnership, “Auto24 is being launched today to increase the confidence of African consumers in the used vehicle market.”This is an exciting challenge that will provide a safe, convenient, trustworthy, and enjoyable experience when buying or selling used cars.”

West Africa imports approximately 70% of all used vehicles imported into Africa. Although the majority of this can be attributed to Nigeria, Auto24 is launching in Ivory Coast as well. A call with TechCabal revealed that Peyrieire chose Ivory Coast because of its significance to francophone West Africa (Stellantis is a cross-border merger between Italian-American Fiat Chrysler and the French PSA group). As a result of its partnership with CFAO, Africar gathered a deep understanding of the market in the country. According to the IMF, Ivory Coast has the 8th fastest growing economy in Africa.

In North Africa, Carzami raised an undisclosed seed round to provide second-hand cars to Egypt last week. The founders said they expect revenue to reach $30 million by 2024.  techcabel  interviewed Peyriere, who said that while the market was big, his company has “conservative but promising projections.” He added that the company expects to generate $100 million in revenue over the next few years.

 

Peyriere told TechCabal that Auto24’s business model is “simple.” The startup will buy used cars locally, recondition them, and sell them in Ivory Coast. Customers will be able to purchase “certified used cars” from the startup.

Auto24’s business model

 

Through its online channels, The Africar Group has enabled over 25 million car buyers and sellers to trade used cars, slowly establishing itself as Africa’s leading online car marketplace.

Africar’s CEO and co-founder Axel Peyriere said of the partnership, “Auto24 is being launched today to increase the confidence of African consumers in the used vehicle market.” This is an exciting challenge that will provide a safe, convenient, trustworthy, and enjoyable experience when buying or selling used cars.”

West Africa imports approximately 70% of all used vehicles imported into Africa. Although the majority of this can be attributed to Nigeria, Auto24 is launching in Ivory Coast as well. A call with TechCabal revealed that Peyrieire chose Ivory Coast because of its significance to francophone West Africa (Stellantis is a cross-border merger between Italian-American Fiat Chrysler and the French PSA group). As a result of its partnership with CFAO, Africar gathered a deep understanding of the market in the country. According to the IMF, Ivory Coast has the 8th fastest growing economy in Africa.

In North Africa, Carzami raised an undisclosed seed round to provide second-hand cars to Egypt last week. The founders said they expect revenue to reach $30 million by 2024. TechCabal interviewed Peyriere, who said that while the market was big, his company has “conservative but promising projections.” He added that the company expects to generate $100 million in revenue over the next few years.

Peyriere told TechCabal that Auto24’s business model is “simple.” The startup will buy used cars locally, recondition them, and sell them in Ivory Coast. Customers will be able to purchase “certified used cars” from the startup.

In order to make the process of selling and buying used cars more efficient, Auto24 wants to digitize it. Before accepting each car, the startup inspects it based on its 100 points of inspection, services it to its standard, and then offers a price.

Peyriere calls the startup’s pricing model “a unique valuation system for Africa”.Africar has gathered data for over six years for this system. According to Peyriere, Auto24 would process this data using artificial intelligence.

Auto24 wants to expand its customer base by offering unique services that differ from the rates offered by average car dealers. In addition to the 5-day refund policy, CFAO will offer customers a 6-month warranty on the gearbox, engine, and powertrain, a 1-year roadside assistance package, and 1-year maintenance with AutoFast.

Among his portfolio companies are Lazerpay, Treepz, and Appetito, and Peyriere told TechCabal that Auto24 will not only offer Stellantis brands, but also cars based on demand. This is due to the fact that most used cars in Africa are Asian brands like Toyota and Suzuki.

Carzami and Auto24 could help reduce the number of faulty used cars on the continent for Africa’s growing middle class.

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