Shekel Mobility, the YC-backed B2B auto dealers marketplace, has secured $7 million in funding.
Comprising $3.2 million in equity and an additional $4 million in debt, the funding round, gives Shekel Mobility a clear path to accelerate its growth trajectory as it gears up to introduce innovative solutions in the coming months.
The funds are set to catapult Shekel Mobility’s current Annual Recurring Revenue (ARR) of slightly over $2 million to four times its size. While leveraging this financial injection, Shekel Mobility prepares for its upcoming priced round, building on the momentum gained from this significant funding round.
Founded by Benjamen Oladokun and Sanmi Olukanmi, Shekel Mobility’s success builds upon its earlier achievements, including a $1.95 million pre-seed investment in January led by Ventures Platform, with participation from Y Combinator, Voltron Capital, and Zedcrest.
In the latest seed round, Ventures Platform and MaC Venture Capital co-led the investment with participation from Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, and various angel investors. The debt fund was facilitated by entities such as Zedvance, VFD Microfinance Bank, Zenith Bank, and Fluna, with some leveraging Shekel Mobility’s platform to finance auto dealerships.
Positioning itself as a mobility fintech, Shekel Mobility’s mission is to empower car dealers in navigating the $30 billion African used car market. The startup aims to be the go-to platform for launching and expanding car dealerships, aspiring to build the largest auto dealership ecosystem with transactions reaching $10 billion annually by 2025.
At the core of Shekel Mobility’s journey is its flagship product, Shekel Credit, offering immediate financing access to auto dealers. With credit limits extending up to $200,000 for vehicle purchases, Shekel Mobility has facilitated transactions exceeding $56 million. The unique financing model ensures a 0% default rate by overseeing the end-to-end process of buying and selling cars through dealerships.
Looking ahead, Shekel Mobility plans to introduce new offerings, including Shekel Business, designed to digitise informal trading processes within the auto dealership vertical. These tools aim to streamline sales processes, structure operations, and contribute to reducing the overall cost of owning car dealerships.
Investors recognise the potential of Shekel Mobility. Kola Aina, the founding partner at Ventures Platform, applauds the startup for creating a market-shaping innovation essential to the growth of Nigeria and Africa’s automotive industry. Marlon Nichols, Founder and Managing Partner at MaC Venture Capital, highlights Shekel Mobility’s potential to boost the African automotive sector by empowering small businesses with financing and providing affordable automobiles to local communities.