Carzaty: The realistic exit

  • Date: 19-Dec-2022
  • Source: Wamda
  • Sector:Retail
  • Country:Oman
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Carzaty: The realistic exit

The used car market is worth over $16 billion in the GCC alone, but it is a highly fragmented sector, with mostly small resellers and individuals selling their cars on platforms like Dubizzle or Facebook. Several startups have emerged across the region to try to disrupt the sector, but it was Carzaty, founded in 2018 in Oman by Hassan Jaffar and Marwan Chaar, that became an acquisition target for Kavak, the Mexican used car platform last valued at $8.7 billion. 



Exiting within four years of launching may sound like a swift success story, but for Jaffar and Chaar, it is a story punctuated by several near failures and a lot of stress. When the pair launched their operations in Muscat and secured a $2.3 million Seed round in 2018, their growth trajectory was firmly in place, placing emphasis on healthy unit economics and steady path to profitability. Carzaty’s digital-first, omnichannel used car platform proved popular and the next stage was to expand to the UAE. The launch date was set for March 2020, but then the pandemic hit and “everything fell apart” according to Chaar. 



The Dubai operations were shut down before launching, pushing the entire company into furlough