South African auto-tech startup Carscan receives $1.3M in follow-on funding round
South African startup Carscan has raised $1.3 million in a funding round to further its expansion operations. Carscan is a prime artificial intelligence and augmented reality app built for vehicle inspection and automobile insurance.
The innovative platform makes a complete, reliable, and detectable digital record of cars. In addition, the application enables users to assess and extract information about a vehicle quickly. As a result, it accelerates the insurance claim process that may span weeks to a few minutes.
Carscan also helps users interfacing with its platform to buy, sell, rent, service, insure, and auction cars with ease, as the system eliminate fraud and industry risks.
Obins Choudhary and Chander Prakash founded Carscan in 2019 to disrupt the global vehicle inspection industry and resolve the lag in access to vehicle history and repair centers, the lack of reliable data, and the high cost incurred in car maintenance.
The primary focus is on the inspection and insurance of cars. Users can scan vehicles from any smartphone device to quickly detect damages through a self-assessment pattern analysis. The App can also record vehicle identities to identify fraud through VIN-license matching and Geo-tag mapping.
The platform has made incredible tractions with South African, Nigerian, and Indian users, with recent expansion into the Gulf regions. On expanding its operations, Prakash comments, “Carscan is working with several local and international clients and has been developed in conjunction with one of the most prominent players in the automotive sector in South Africa.
Carscan had initially raised an undisclosed amount in a seed funding round in 2020 to help scale the startup. The follow-up round had its initial seed fund participators; Kalon Venture Partners, Launch Africa Ventures, IDF, and newcomer investors Allan Gray E2 Ventures and AlphaCode.
Kalon Venture Partners CEO Chive Butkow explained that the platform had displayed the exceptional talent that resolves pressing challenges in the insurance and automobile industries.
“This follow-on round is testimony to the growth of the company and the Carscan’s team’s ability to deliver a solution solving a large problem across industries. The solution will disrupt the motor industry and make lives easier for numerous automobile and insurance value chains.”
Abu Cassim, the fund executive for AlphaCode, said he was delighted to make Carscan the first investment through its newly-established fund.
“Carscan is a great fit for our broader group, and the founding team has shown exceptional aptitude in executing on this solution. We look forward to seeing them grow this solution across various markets,” he stated.