Carzaty

Carzaty operates as a technology-driven omnichannel automotive retailer in the Gulf Cooperation Council (GCC) region, aiming to overhaul the traditional used car market. Founded in Muscat, Oman, in 2017 by Hassan Jaffar and Marwan Chaar, the company expanded its operations to the United Arab Emirates. Jaffar, with a background as an investment professional at New York-based hedge funds and as a management consultant for McKinsey & Co., brought analytical rigor to the venture. Chaar contributed his experience from the clean-tech startup GlassPoint Solar and holds master's degrees from Stanford University and Harvard Business School.

The company's business model centers on leveraging proprietary data and market intelligence to acquire, recondition, and sell in-demand used cars. Carzaty sources vehicles directly from consumers, as well as from fleet and leasing companies. Each car undergoes a rigorous inspection and refurbishment process to meet quality standards before being listed. Revenue is generated directly from the sale of these vehicles. The company established an omnichannel sales approach, featuring digital showrooms in Muscat and Dubai where customers can view high-resolution images and specifications of the cars online before scheduling a test drive. This model reduces the overhead costs associated with traditional, large-scale physical showrooms. In addition to car sales, Carzaty facilitates trade-ins and connects buyers with financing partners.

A pivotal moment for the company was its acquisition by Kavak, a SoftBank-backed used-car platform from Mexico, in a deal finalized in 2022. This merger provided Carzaty with significant capital, with Kavak committing $130 million to expand operations across the GCC, including establishing large vehicle reconditioning centers. Prior to the acquisition, Carzaty had raised approximately $5.9 million in funding from investors including IDO Investments, the venture capital arm of Oman's sovereign wealth fund, and Sansar Capital. The founders, who became co-CEOs of Kavak GCC post-acquisition, had methodically built the company with a clear exit strategy, focusing on unit economics, revenue growth, and regional footprint. Keywords: automotive retail, used cars, e-commerce, GCC market, data analytics, vehicle reconditioning, omnichannel sales, automotive finance, trade-in, Kavak