Shekel Mobility Drives Success: Nigerian Startup Raises $7M in Seed Round

Infostride News reported that Shekel Mobility, a Nigerian startup backed by Y Combinator (YC), has successfully raised $7 million in a seed funding round. This funding comprises $3.2 million in equity and over $4 million in debt. The startup plans to utilize the funds to fuel growth in its Annual Recurring Revenue (ARR) as it prepares for its upcoming priced round.

Earlier in the year, Shekel Mobility had announced a pre-seed investment of $1.95 million in January, with Ventures Platform leading the round. Other participants in the pre-seed round included Y Combinator, Voltron Capital, and Zedcrest. The recent seed round was co-led by Ventures Platform and MaC Venture Capital, with additional investments coming from Y Combinator, Rebel Fund, Unpopular Ventures, Maiora Capital, PageOne Lab Inc., Phoenix Investment Club, Heirloom VC, Pioneer Ventures, and several angel investors.

Debt funding for Shekel Mobility came from entities such as Zedvance, VFD Microfinance Bank, Zenith Bank, and Fluna, among others. Notably, some of these financial institutions have leveraged Shekel Mobility’s platform to facilitate financing for auto dealerships.

Shekel Mobility operates in the same sector as other mobility startups like Autochek and Moove, all of which focus on addressing different aspects of vehicle ownership by providing financing solutions for consumers and drivers. Vehicle financing plays a crucial role for small car dealers, aiding them in managing daily transactions and minimizing costs.

The core function of Shekel Mobility revolves around helping car dealers navigate the $30 billion African used car market by facilitating finding, financing, and selling cars. The startup positions itself as a leading platform for launching and expanding local or virtual car dealerships, with a vision to build the largest auto dealership ecosystem, targeting transactions totaling $10 billion annually by 2025.

According to Shekel Mobility, it has already facilitated transactions exceeding $56 million to date, supporting the growth of over 1,400 auto dealers and impacting the sale of 7,000 cars.

Building on its growth trajectory over the past 20 months through its credit product, Shekel Mobility is set to introduce new offerings, including Shekel Business. This product aims to digitize informal trading processes within the auto dealership vertical, expanding the startup’s reach and influence.

Benjamen Oladokun, Co-founder of Shekel Mobility, highlighted the startup’s evolution, stating, “One of the fundamental things we’ve built is the ability to buy a car without collateral. We started out lending to dealers, but now we’re looking to provide additional digital tools and physical infrastructure to reduce the cost of owning car dealerships.”

Ventures Platform’s Founding Partner, Kola Aina, emphasized the significance of Shekel Mobility’s innovation, describing it as a market-creating solution crucial for expanding Nigeria and, soon, Africa’s automotive industry. Marlon Nichols, Founder and Managing Partner at MaC Venture Capital, also commended Shekel Mobility’s potential to transform and energize the automotive industry in Africa by supporting small businesses in need of financing.

Nichols added, “The team is enabling millions of dollars to move through the Nigerian economy and simultaneously providing locals with affordable automobiles.” This positive feedback from investors underscores the confidence in Shekel Mobility’s mission and its potential to bring about positive change in the automotive landscape in Africa.