Shekel Mobility, a smart fintech for auto dealerships, secures $7 million in funding, with $3.2 million in equity and over $4 million in debt.
The funding round involved participation from Ventures Platform, Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, and other angel investors. The debt component was provided by Zedvance, VFD Microfinance Bank, Zenith Bank, and Fluna.
Co-founder Benjamen Oladokun states that this investment will significantly expand the company’s impact, specifically in assisting car dealers in Africa. The World Economic Forum highlights Africa’s increasing demand for 2.4 million cars and 300,000 commercial vehicles annually, driven by rising disposable income, a growing middle class, and rapid urbanization.
Despite the demand, Africa’s car ownership is less than 45 cars per 1000 people, contrasting sharply with the global average of 203. Shekel Mobility aims to address the gap for vehicle sellers in Africa.
The core of Shekel Mobility’s growth revolves around its primary offering, Shekel Credit, providing immediate financing to auto dealers with credit limits of up to $200,000. The financing model involves the dealer contributing 30% of the total cost, with Shekel covering the remaining 70% as a loan. After selling the vehicle to the end customer, the dealer repays Shekel, covering the loan interest and transaction fees.
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Kola Aina from Ventures Platform emphasizes Shekel’s role in developing a market-creating innovation crucial for the growth of Nigeria’s and Africa’s automotive sector. Marlon Nichols, founder and managing partner at MaC Venture Capital, sees Shekel Mobility as having the potential to revolutionize Africa’s automotive industry by providing crucial financing and support to small businesses, enabling millions of dollars to move through the Nigerian economy and providing locals with affordable automobiles.