- Auto24, an Ivorian online marketplace for buying, trading, and selling used cars, has acquired Kupatana, a Tanzanian online classifieds platform, to solidify its presence and expand in sub-Saharan Africa.
- According to the source, the company would pay SEK 750,000 ($71,900) in cash on the closing date, which is undisclosed.
- Auto24 plans to enter Tanzania through this acquisition and launch in Tanzania later in the year.
The acquisition also contributes to Auto24″s expansion into Morocco, Rwanda, Senegal, and South Africa in 2023, a year after its launch in Abidjan, Côte d’Ivoire.
Africar, an online automotive marketplace, launched Auto24 in September 2022 in collaboration with Stellantis, the parent company of several brands, including Maserati, Peugeot, and others.
Auto24 offers warranties, insurance, and a 150-point inspection. Auto24 features over 20 brands, including BMW, Ford, Honda, Hyundai, Isuzu, Jeep, Kia, Mitsubishi, and Nissan. Prices for the cars are not negotiable, but they can be viewed in person at Auto24 showrooms.
In December 2022, it declared that it would set up an electric vehicle charging station for the general public in Abidjan, Côte d’Ivoire. It stated that it would work with EV.Tech, a nearby business specialising in electric vehicle charging equipment.
Africa is home to about 50 million automobiles, or just 1% of all cars globally. Nonetheless, it accounts for 40% of the market for imported used vehicles. A report shows that Africa’s used car market is valued at $40.45 billion and is expected to reach $61.24 billion by the end of 2029.
Tanzania has a population of up to 65 million people, and its GDP is expected to grow by 6.3% by 2024. The Tanzanian used car market is valued at $38.50 million and could surpass a net valuation of $55.66 million by 2029.
Notably, Auto24 plans to enter this market through an acquisition and launch in Tanzania in 2024.
Kupatana is a Tanzanian brand and one of the country’s early classifieds websites. In December 2021, the company merged with Roam’s ZoomTanzania to form a new online marketplace.
Per the deal, Euroafrica Digital Ventures, a private limited company in the country, obtained rights to market and operate the two classified platforms.
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At the time of their merger, ZoomTanzania and Kupatana each had 87,000 and 62,000 listings, respectively, with an average of 500,000 monthly visits. With this latest acquisition, Roam has left East African classified platforms.
