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Ivorian startup, Auto24, expands into four African countries simultaneously

September 28, 2023
in Technology
Ivorian startup, Auto24, expands into four African countries simultaneously
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Auto24, an Ivorian used car marketplace, has expanded into Morocco, Rwanda, Senegal, and South Africa, a year after it launched. 

Auto24, a used car marketplace, has expanded into four new African markets: Morocco, Rwanda, Senegal, and South Africa. This expansion comes exactly a year after the startup launched in Abidjan, Côte d’Ivoire to sell “reconditioned used cars” with several add-on services like a five-day refund policy, a six-month warranty, one-year maintenance, and one-year insurance plans for all vehicles. Axel Peyriere, the CEO and co-founder of Auto24, told TechCabal via text that the startup was expanding to build on a “bullish” year and chose Morroco and South Africa because they are the two biggest car markets on the continent. 

“In terms of new car sales yearly, South Africa is about 450,000 per year, Morocco about 180,000. Côte d’Ivoire for example is about 20,000 and Nigeria only 5,000. Even if we are in the used car space, it is a good indicator,” he said. He added that the startup chose Rwanda as an “entry gate” into East Africa and a market to sell electric cars because of its green policy. The expansion into Senegal was because of its similarity with Ivory Coast. 

Cars per 1000 people. Source: International Organisation of Motor Vehicle Manufacturers (OICA)

Auto24’s expansion into Senegal comes a month after Chargel, a Senegalese logistics company, expanded into  Côte d’Ivoire. As Peyriere mentioned, Moustapha Ndoye, the CEO of Chargel, also told TechCabal that the expansion was because of similar dynamics between the two countries. This further lends credence to the ease of cross-border expansion that similar currencies, languages, and cultures in francophone Africa lend to its tech ecosystem.

Although he declined to share numbers, Peyriere told TechCabal that Auto24 has performed well in the past year and has “helped thousands of customers” to buy cars with no warranty return. “Our business model is very virtuous in the sense that first, our cars, as being used, are more affordable than new ones, and it is a real circular economy,” he added. 

When asked how Auto24 was able to launch in four countries simultaneously, Peyriere told TechCabal that he had started the expansion process months before and that he was already preparing to launch in more countries. “[We expand] to grow faster and accelerate growth,” he said.

Customers can access different financing options on Auto24 as a result of the partnerships that the startup currently has with other companies. The websites for the newly added countries will be available in both international and local languages and will allow customers to reserve and secure their desired car before test-driving and finalising the purchase. 

“Our obsession is to be customer-centric,” Peyriere. “Our goal is not only to be the best in the market but to ensure we deliver unparalleled services for every used car buyer and seller. This expansion is a testament to our dedication.”

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Copyright for syndicated content belongs to the linked Source : TechCabal – https://techcabal.com/2023/09/28/auto24-expansion/

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