Egypt: Used car platform Carzami raises pre-seed funding

Carzami, an online retailer for used cars and vehicle financing, announced the close of a pre-seed round led by Contact Financial Holding, together with a scalable inventory financing facility, which it plans to use to transform Egypt’s used car market, targeting $30 million in revenue by 2024.

With this strategic investment from Contact, Egypt’s largest non-bank financial services provider, Carzami is positioned to launch its innovative model for a digital car dealership while being able to offer crucial vehicle financing and insurance options.

Carzami aims to fix the Egyptian used car market by providing consumers with an online platform offering certified and reconditioned used cars with 360-degree virtual tours and inspection reports. Customers can order any car they like to be delivered to their doorstep to test drive, and then purchase with financing and insurance options.

Carzami understands that the fragmentation and mistrust that characterises the used car industry is unconducive for business growth. With the funding, Carzami seeks to continue growing its inventory. Along with that, Carzami is looking to expand its fleet of delivery haulers, enhance its operational technology, build a productive team, and build a modern reconditioning facility. Importantly, Carzami will utilise the funding in optimising its organisational efficiency and building on the existing functions, such as vehicle financing.

Hazem Moussa, chairman of Contact Financial Holding stated that, “Our faith in digitising the automotive market in Egypt has been with us from our early years; we launched contactcars.com in 2002 as the first car marketplace and community for both new and used cars. In addition, Contact pioneered financing of used cars over 10 years ago, now we believe we can support Carzami in its quest to re-invent the used car purchase experience.”

Carzami was co-founded in 2022 by Hussein Hosny and Adham Hosny, two seasoned entrepreneurs in the automotive space.

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