The Sweden-listed investment firm Vostok New Ventures has invested $1.5m in CarZar.co.za, an online car buying service for the secondhand auto-trade industry in South Africa. 

Vostok New Ventures investment in CarZar is part of larger funding round.

CarZar has proven its economic viability to its funders. 

They are also backed by Silvertree Capital, the South-African based venture capital firm behind PriceCheck, a price comparison website in South Africa, and CyberCellar, South Africa’s oldest and most trusted online bottle store. 

CarZar is also backed by a third undisclosed UK-based investor focusing on emerging markets.

In operation for only a year, CarZar has been disrupting the second-hand car market by introducing technology to an industry that has remained traditional for decades.

CarZar Joint MD, Fernando Pineiro, said the investment is a fantastic opportunity for CarZar. 

“With this new round of funding they will focus more on improving customer experience, as well as boosting marketing, and recruiting more talents to join their international team,” he said.

CarZar entered the second-hand car market with a clear mission – empowering SA consumers to sell their pre-loved vehicles seamlessly.

Potential sellers can simply go onto the CarZar.co.za website, and enter their cars details; after which CarZar’s unique algorithm will generate an estimate for the vehicle’s selling price instantly. 

If the seller is happy with the estimated value, they can book a free inspection with one of CarZar’s fully trained car inspectors – at one of CarZar’s Car Buying Centres or at their preferred location. 

Within 20 minutes, the inspector will make a final offer to the seller. 

CarZar then makes an instant payment and takes care of all the paperwork. 

In all, the process takes 30 minutes.

The CarZar service comes at zero cost to customers and it is 100% obligation-free.

With the tech-startup making waves in the car industry, CarZar has captured the eyes of Vostok New Ventures. 

The NASDAQ Stockholm-listed investment firm, which was founded in 2007, finds and identifies investment opportunities with strong network effects characteristics through expertise, experience and a widespread network, built-up during the company’s history.

The firm has also funded other successful online tech-brands – BlaBlaCar, a long-distance ride sharing service; Gett, an on-demand taxi hailing service available in Israel, Russia, UK and New York City; babylon, an AI-driven digital healthcare company, and many more.