The Munich startup Abracar receives 11.5 million euros from Allianz X. The Munich-based insurance group has been involved in the start-up from the outset.
The startup facilitates the private sale of used cars. The company initially assists with pricing and condition assessment. It then handles marketing and buyer matching, securing the transaction with a warranty, legal expenses insurance, and a secure payment method. Sebastian Jost and Orhan Köroglu founded Abracar in 2016 with funding from Allianz X, Allianz's digital investment unit. Abracar plans to use the fresh capital to expand its market position in Germany and expand into France and Austria.
“Abracar is an excellent example of how we at Allianz X support young digital companies that offer overlap with our traditional core business,”
says Dr. Nazim Cetin, CEO of Allianz X.
“We are therefore very pleased with the development of Abracar and would now like to take the next step together.”
Abracar completes car sale
Customers who want to sell their used car through Abracar enter their vehicle's key data and their asking price online, and the algorithm then provides a price suggestion. The startup sends an appraiser to the customer to conduct a detailed condition assessment and take professional photos. The company then places advertisements on portals such as Autoscout24 and mobile.de, in classifieds, on its own platform, and within its dealer network. The startup negotiates the price with interested parties and arranges viewing appointments. According to the company, an average of 1.8 viewing appointments are necessary for a sale. The seller pays four percent of the sales price for the service, with a minimum of €399 and a maximum of €999. Co-founder and Managing Director Orhan Köroglu says:
“We want the customer to have as little effort and risk as possible.”
According to the company, the used car market is worth almost €85 billion and is growing both in terms of unit sales and the average price of traded vehicles. The startup receives new orders worth more than €10 million per month. The average price of the used cars brokered is approximately €15,000.
