Otunba Fawaz Motors (OFM) is a Nigerian B2B digital inventory database and management system of used cars which helps dealers, merchants, and middlemen in the African automotive industry better coordinate sales and make business easier.
Founded in 2018 by Abdul Fawaz Olayemi, OFM started by providing all auto-related services such as buying and selling of used cars, car repairs, car swaps, and car registration. In the last quarter of 2021, Olayemi decided to delve into technical solutions and a more scalable option in the auto-trading sector.
40% of all used cars exported globally end up in Africa, with Nigeria and Libya as the top 2 destinations. “In Nigeria alone, there are about 3000 used car dealerships but there is no central database system containing all their inventories. While individual dealers have these inventories, there are no specific details about the location, number of cars, specs etc; we decided to create this unified database and management system for the market to enable dealers and other players in the value chain to sell cars faster and make business easier,” Olayemi said.
Despite the huge potential of the African used car market which is projected to hit $45 billion by 2027, the industry is dominated by small and unorganized regional players. This calls for the adoption of better structure and organization using platforms like OFM which aggregates and manages car inventories of dealers across different African countries on one platform. “The plan is to focus on car sales inventory management, lead generation, and information. We are building this inventory for Nigeria first before expanding into other African markets,” he added. The platform also provides important information like color, specs, chassis number, mileage, engine type and size, working conditions, etc about the cars on the platform which can be sent to potential buyers during negotiations.
The new OFM platform has been in its testing phase since Q3 of 2021, but launched fully in the second quarter of 2022 and has sold over 1300 cars since the testing phase according to Olayemi. Dealers, merchants, and middlemen can register on the platform free of charge and sell cars from the comfort of their homes. OFM ensures smooth handling of commission agreements between dealers or merchants and middlemen who find buyers for their cars.
For collective prosperity and to encourage everyone along the auto-trading value chain, OFM operates a freemium model for the time being. Olayemi explained that this is to enable the platform to scale up usage to gain confidence and trust in the market and enable people to understand that the platform is the future of the auto-trading industry. This, according to him, is the first line of action after which a subscription fee will be charged in the long run.
He was quick to add that the company has raised $30k in pre-seed funding to develop the digital tools for the company’s new direction and to keep the company with about 11-50 employees in the business.
As a technology-inclined business with innovative digital solutions to make business easier in the auto-trading market, OFM accepts crypto payments in stablecoins and other major cryptocurrencies. The platform has also partnered with Mecho AutoTech, a technology platform that delivers seamless auto maintenance, inspection, and repair services via a robust network of certified mechanics and automobile technicians, to help OFM customers fix and repair their cars. This helps solve a major problem plaguing the used cars market as buyers on the OFM platform are guaranteed tested, and trusted quality auto-mechanic service should the need arise.
As a B2B business, OFM is first looking to push traffic from dealers and merchant’s inventory registration to the platform after which the company’s app under development will be rolled out.