Pan-African online used car platform AUTO24.africa has acquired Tanzania’s leading digital classifieds property, Kupatana.com. The purchase from parent company Euroafrica Digital Ventures represents a milestone for AUTO24.africa as it strengthens its dominance of Sub-Saharan Africa’s booming used car market.
Backed by Stellantis and managed by Africar Group, AUTO24.africa has acquired Kupatana and its companion website, Zoom Tanzania, for an undisclosed sum. With the acquisition, AUTO24 now oversees 50+ specialized car sales portals across African countries as the region’s undisputed leader in digital car classifieds.
The deal comes on the heels of the launch of AUTO24 in Rwanda and Senegal, joining existing used sales in Ivory Coast, Morocco and South Africa. The used vehicle platform provides services such as certified inspections, warranties and insurance to meet consumers’ growing desire for reliable and modern car shopping experiences.
Closing in on pole position for Tanzania’s online car classifieds segment, AUTO24 is poised to benefit from favorable economic conditions. Analysts forecast GDP expansion of 6.3% in 2024 for the East African country of 65 million citizens.
βTanzania’s booming consumer market coupled with rapid internet adoption is driving a huge shift to online transactions from car purchases to real estate,β observed Karim Hussain, CEO of AUTO24.africa. “Our goal is to accelerate this wave of automotive e-commerce.”
The migration of Tanzanian car buyers to reliable and efficient online channels remains AUTO24’s motivation behind the Kupatana deal. The company plans to integrate its signature services such as certified inspections and insurance into the Tanzanian market later in 2024.
With a position secured in Tanzania, AUTO24.africa appears to be focusing on an ambitious geographic expansion strategy into Africa’s under-penetrated car sales industries.
The World Bank estimates that over 17 million used vehicles changed hands across sub-Saharan Africa in 2021. However, the vast majority of these transactions are still person-to-person outside of informal markets.
AUTO24 seeks to convert buyers and sellers to the safety, convenience and legitimacy of e-commerce platforms. Features like seller verification, financial products and brokerage build trust in the digital format.
By absorbing locally popular incumbents in fragmented markets like Kupatana, AUTO24 can make direct inroads with tailored offerings while leveraging operational efficiency.
Africar Group’s vertical classifieds umbrella reaching 10 million monthly users helps accelerate. With market dominance and quality service as distinct strengths in what remains a predominantly offline industry, AUTO24 seems to stand alone as the leading certified brand in the used car market in Africa.