Ivorian online used car marketplace, Auto24, has expanded its presence in sub-Saharan Africa with the acquisition of Tanzanian online classifieds platform, Kupatana. The acquisition adds to Auto24’s growth in Morocco, Rwanda, Senegal, and South Africa in 2023, following its introduction in Abidjan, Côte d’Ivoire a year earlier.
Launched in 2022 in partnership with Stellantis, the parent company of brands such as Maserati and Peugeot, Auto24 offers services ranging from warranties and insurance to a 150-point vehicle inspection. Featuring more than 20 brands, such as BMW, Ford, Honda, and Hyundai, the platform allows in-person vehicle viewing at its showrooms. However, car prices are firm and not open to negotiation.
In addition to the acquisition, Auto24, which launched in Tanzania after the purchase, announced in December 2022 a plan to launch a public electric vehicle charging station in Abidjan, in collaboration with local company EV.Tech, specialized in electric vehicle charging equipment.
Despite only hosting 50 million cars, which represents a mere 1% of the world’s total, Africa accounts for 40% of the imported used car market. The used car market in Africa is valued at $40.45 billion and is projected to grow to $61.24 billion by 2029.
Tanzania, with a population close to 65 million and an expected GDP growth rate of 6.3% by 2024, harbors a burgeoning used car market. Currently valued at $38.50 million, it is forecasted to exceed $55.66 million by 2029.
As an active player in this growing industry, Auto24 aims to tap into this potential growth by infiltrating the Tanzanian market via an acquisition and launching operations in 2024.
Kupatana, an early online classifieds website in Tanzania, merged with Roam’s ZoomTanzania to form a new digital marketplace in December 2021. As per the agreement, Euroafrica Digital Ventures, a local private limited company, acquired the rights to market and run both classified platforms.
At the time of the merger, ZoomTanzania and Kupatana had 87,000 and 62,000 listings respectively, averaging monthly visits of about 500,000. However, with Auto24’s recent acquisition, Roam has effectively withdrawn from the East African classified platforms.
