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The Turkey-based digital marketplace for used cars VavaCars has successfully raised $50M in its latest funding round. The Series B round was led by Duquesne Family Office LLC (founded by Stanley F Druckenmiller) and Vitol, with participation from other key investors.
Launched in Turkey in 2019, VavaCars has traded more than 10,000 cars and has grown to a team of 300 employees serving markets across Turkey and Pakistan. The company has been growing gross merchandise value (GMV) by an average of 30pc month-on-month, serving the wholesale and retail market with the very best selection of consumer sourced cars. By providing a tech-integrated digital platform, the Turkey-based startup makes the process of finding and buying a car of choice seamless and highly accessible.
Based on MAGNiTT’s flagship Turkey Q3 2021 Venture Investment Report, Turkey-based startups have been observing a stellar year with growth in funding and number of transactions, closing of Mega Deals in every quarter of this year so far, and record-setting funding rounds by Dream Games, Trendyol, Getir, Evtiko and now VavaCars. What’s most interesting about the Turkish ecosystem this year is the fact that it’s the only geography between MENA, Turkey, and Pakistan to observe both deal volume and capital YoY growth; this was also accompanied by an increase in Mean round sizes where the average Series B round in Turkey by Q3 2021 increased by almost 400% YoY.
Lawrence Merritt, CEO, and co-founder of VavaCars, said the funding round will help in disrupting, inventing, and simplifying used-car trade for customers. VavaCars has recently launched its direct-to-consumer offering to complement its high-frequency online auction sales to dealers, where consumers may buy cars fully online without ever setting foot in a dealership; where every car is fully inspected, reconditioned, and delivered to the consumer’s home for free. "In [the] two and a half years since launch, we’ve become the number one trader of consumer sourced cars in Turkey accounting for 90 per cent of all fully online sales. This demonstrates the power of our model and the huge market opportunity," Lawrence Merritt, CEO and co-founder highlighted "Customers can sell their cars instantly for cash by using VavaCars online valuation tool combined with a physical inspection at one of its Customer Centres, typically located on a Petrol Ofisi forecourt in Turkey," Merritt concluded.
Vavacars has managed to create a broad spectrum platform covering markets across geographies yet still maintaining a user-centric approach. Consumers benefit from a 14-day money-back guarantee and a 3-month warranty, building the trust needed for the platform’s continuous growth. The Turkey-based startup plans to utilize its newly acquired funds to accelerate the buildout of VavaCars’ technology platform, physical infrastructure, and brand. In the long run, VavaCars intends to expand into new markets leveraging the fuel station networks of its founding investor, Vitol.
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