Nigeria, with its bustling roads and nearly 14 million cars, represents a lucrative yet challenging market for car dealerships. Dealers often face slow inventory turnover, leaving vehicles unsold for long periods. Addressing this pain point, Carbin Africa, a B2B automotive startup founded in 2023, has set out to streamline operations and enhance profitability for car dealers.
The Founding Journey
Femi Oriowo and Fawaz Abdul, co-founders of Carbin Africa, began their entrepreneurial journey as participants in an OLX sales program during their university days at UNILAG in 2015. Their stint at Cars45, where they built a vast agent network, offered them insights into the automotive market’s inefficiencies.
After facing leadership challenges at Cars45, the duo launched their own business in 2018, selling over 1,000 cars in three years. However, the complexities of sourcing and selling vehicles swiftly motivated them to create a more efficient solution, culminating in the founding of Carbin Africa.
The startup gained significant traction after being incubated by 54 Collective’s Gen F program, receiving mentorship from industry veterans, including former Cars45 executives.
Carbin Africa’s Unique Proposition
Carbin Africa differentiates itself by focusing on solving inventory and sales challenges for car dealers and agents, making it a complementary player in the ecosystem rather than a competitor to existing automotive startups like Autochek or Mecho Autotech.
Key Offerings:
- Autohub
- Core Service: A B2B solution enabling dealers to sell cars quickly.
- Revenue Model: Carbin Africa charges a markup on vehicles sold.
- Dealer Mart
- A SaaS platform tailored for dealerships, automating inventory sourcing, vehicle listings, and quality checks.
- Car Flex
- A credit facility for dealers struggling with macroeconomic challenges. The loans are provided via partnerships with platforms like Advancly.
- Carbin Lease
- Leasing services for unsold vehicles, including luxury cars, ensuring dealerships maintain cash flow.
AI-Powered Data Platform
Carbin Africa’s flagship technology aggregates real-time data from over 1,800 car listings across dealerships, updated every 30 minutes. This platform empowers 200 dealers and 850 agents with actionable insights, such as high-demand models and optimal inventory strategies, tailored by location.
Early Success and Market Impact
Since its official launch in March 2024, Carbin Africa has:
- Exceeded ₦1 billion in Gross Merchandise Value (GMV).
- Sold over 80 cars through its platform.
- Onboarded over 200 dealers and 850 agents.
By gamifying the sales process with leaderboards and expanding inventory visibility, Carbin Africa has transformed how agents operate. Previously limited to physical visits to dealerships, agents can now access listings beyond their immediate location, significantly boosting sales.
Macroeconomic Challenges and Adaptation
Nigeria’s automotive market faces challenges like naira devaluation, rising import costs, and constrained consumer spending. However, Carbin Africa leverages data to adapt to these realities.
- Consumer Insights:
- Most car purchases occur mid-year or during festive seasons when buyers receive cooperative dividends.
- Used cars dominate the market, comprising 90% of vehicles, with only 5% being new.
- Dealer Trends:
- Insights from aggregated data help dealers identify the best-selling brands for specific locations, e.g., Lekki vs. Festac.
Strategic Partnerships
Carbin Africa collaborates with major players in the automotive space:
- Carloha Nigeria: Exclusive distributor of Chevy vehicles.
- Sterling Bank’s AltDrive: Provides vehicles for its car finance platform.
- Partnerships to ensure stolen cars are flagged, improving trust within the ecosystem.
Future Plans and Profitability
Carbin Africa aims to capture 10% of Africa’s $20.5 billion automotive market by aggressively promoting its flagship and value-added products. With a focus on scaling operations and leveraging its analytics platform, the startup is poised to achieve profitability in the near term.
By addressing critical inefficiencies in inventory turnover and sales, Carbin Africa is positioning itself as a game-changer in Nigeria’s automotive sector, empowering dealers and agents with tools and insights to thrive in a challenging economic landscape.
Carbin Africa’s innovative approach underscores the transformative potential of data and technology in unlocking value across traditional industries like automotive sales, making it a key player to watch in the Nigerian and broader African markets.