Carscan, a South African auto-tech company received $1.3 M follow-on funding
Carscan, a prominent AI and AR app engaged in the auto-insurance industry, has secured a ZAR20 million (US $1.3 million) follow-on fundraising round to help it expand operations.
Carscan is an augmented reality (AR) programme with incorporated artificial intelligence (AI) that provides a digital record of an automobile that is accurate, dependable, agnostic, comprehensive, and traceable. The platform eliminates fraud, governance, and industry risks, allowing automotive ecosystems to buy, sell, rent, service, insure, finance, and auction automobiles with confidence.
The digital programme allows anybody to examine and extract information about an automobile in under a minute, reducing the time it takes to file an insurance claim from weeks to minutes. Carscan promises to be the first of its kind in the world.
Obins Choudhary and Chander Prakash launched the company, which secured a seed round sponsored by Kalon Venture Partners, Launch Africa Ventures, and the IDF in late 2020. The same three investors, as well as Allan Gray E2 Ventures and AlphaCode, are part of the latest round.
Carscan has had a lot of success with customers in South Africa, Nigeria, and India, and has just completed successful proof of concepts in a few Gulf nations. Although its technology has a variety of additional applications, it is now focused on automotive inspection and insurance.
“Carscan assists the consumer and makes the entire claims process simple and frictionless,” Prakash said. “Carscan is working with a number of local and international clients and has been developed in conjunction with one of the largest players in the automotive sector in South Africa.”
Clive Butkow, CEO of Kalon Venture Partners, stated the Carscan team had tremendous potential and that their service addressed a major issue in the insurance and automotive markets.
“The company continues to grow at a rapid rate which is evidenced by their traction and market acceptance,” he said.
“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 stakeholders in the automobile and insurance value chains.”
AlphaCode’s fund CEO, Abu Cassim, expressed his pride in making Carscan the first investment through the 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 said.
