Shekel Mobility, a B2B auto dealers marketplace, has successfully raised over $7 million in a mix of equity and debt funding to enhance its operations and quadruple its current Annual Recurring Revenue (ARR). The Y Combinator-backed startup, founded by Benjamen Oladokun and Sanmi Olukanmi, aims to leverage the new capital to strengthen its market position ahead of its next funding round.
As reported by Techcrunch, the recent funding includes $3.2 million in equity, complemented by over $4 million in debt financing. Notably, the startup has already secured a $1.95 million pre-seed investment earlier this year, led by Ventures Platform with Y Combinator, Voltron Capital, and Zedcrest also participating.
The seed round saw continued support from existing investors such as Ventures Platform and MaC Venture Capital. A consortium of new and returning backers, including Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, Zedvance, VFD Microfinance Bank, Zenith Bank, and Fluna, contributed to the startup’s promising financial foundation.
Oladokun’s partnership with Sanmi Olukanmi brings together a wealth of experience from the automotive industry, which includes their previous venture, Eazypapers Technologies. Their expertise has been pivotal in establishing Shekel Mobility’s foundation and vision.
Shekel Mobility operates in the thriving $30 billion African used car market, where it facilitates car dealers in finding, financing, and selling cars, differentiating itself from other other vehicle financing platforms like Moove and Autochek which provide vehicle financing to car users.
With a bold vision to grow its platform to accommodate $10 billion in transactions annually by 2025, the company has already powered over $56 million in transactions, supporting more than 1,400 auto dealers in moving 7,000 vehicles.
The startup’s innovative Shekel Credit product is at the forefront of its growth, providing auto dealers with immediate financing to enhance their inventory and sales capabilities. The credit product boasts a 0% default rate due to Shekel Mobility’s comprehensive control over the purchase and sale process through its dealer network.
Looking to the future, Shekel Mobility plans to unveil Shekel Business, a digital toolset aimed at digitizing and streamlining operations within the auto dealership sector. The founders emphasize the importance of enabling car purchases without collateral, reflecting a shift from lending to offering broader infrastructural support to reduce dealership costs.
Unlike other vehicle financing platforms like Moove and Autochek which provide vehicle financing to car users through dealers, Shekel is financing the dealers directly.
