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 solidifies dominance of Sub-Saharan Africa’s thriving pre-owned automotive market.
Backed by Stellantis and operated by Africar Group, AUTO24.africa obtained Kupatana and its companion site, Zoom Tanzania, for an undisclosed amount. With the buyout, AUTO24 now oversees 50+ specialized car sales portals across African nations as the region’s undisputed leader in digital automotive classifieds.
The deal comes on the heels of AUTO24’s launch in Rwanda and Senegal, joining existing pre-owned sales operations in Côte d’Ivoire, Morocco and South Africa. The used vehicle platform delivers services like certified inspections, warranties and insurance to satisfy rising consumer desire for trustworthy and modern car shopping experiences.
By locking in pole position for Tanzania’s online automotive classifieds segment, AUTO24 is poised to capitalize on favorable economic conditions. Analysts forecast 6.3% GDP expansion in 2024 for the East African country populated by 65 million citizens.
“Tanzania’s thriving consumer market combined with rapid internet adoption is driving a tremendous shift towards online transactions from auto purchases to real estate,” remarked Karim Hussain, AUTO24.africa CEO. “Our goal is to accelerate this automotive e-commerce wave.”
Transitioning Tanzania’s car buyers towards reliable and efficient online channels remains AUTO24’s motivation behind the Kupatana deal. The company intends to incorporate its signature services like certified inspections and insurance into the Tanzanian market later in 2024.
With a foothold in Tanzania secured, AUTO24.africa appears focused on an ambitious geographic expansion strategy across under-penetrated African auto sales sectors this year.
The World Bank estimates over 17 million used vehicles changed owners across Sub-Saharan Africa in 2021. Yet the overwhelming majority of these transactions still occur person-to-person out of informal marketplaces.
AUTO24 seeks to convert buyers and sellers towards the security, convenience and legitimacy of e-commerce platforms. Features like seller verification, financial products and mediation establish trust in the digital format.
By absorbing locally popular incumbents in fragmented markets like Kupatana, AUTO24 can make immediate inroads with tailored offerings while leveraging operational efficiencies.
Africar Group’s umbrella of classifieds verticals reaching 10 million monthly users assists in acceleration. With market dominance and quality services as differential advantages in what remains a predominantly offline industry, AUTO24 looks to stand alone as Africa’s premier certified used car marketplace brand.