Reezocar Teams Up with CGI Finance
- CGI Finance –subsidiary of Société Générale focusing on car financing options for dealerships– acquires a minority stake in Reezocar capital. This French start-up sell used vehicles to individual customers.
- Despite CGI’s major part in their financing operations, Reezocar will still be working with Viaxel, as a second financing partner. This announcement is in line with an agreement with CACF in place since 2017.
- Reezocar is considering lease-purchase options to finance 50% of the vehicles they will be selling in three years from now.
- Start-up founded in 2014
- 1M visitors per month
- 60,000 leads each year, or €1 Bn
- Several hundred transactions each month
- More than 7,000 satisfied customers
- 3rd funding round, or more than €10 M
- This partnership brings about opportunities for Société Générale and their industry-specific subsidiaries as they make room for ongoing changes in their customers’ consumption habits when it comes to car financing.
- Also, as they hold a share in Reezocar’s capital, CGI will be providing them with specific business skills (familiarity with the market for used vehicles via the online platform Vivacar.fr which has been introduced in France in 2015) and digital skills (through a full-digital customer process). Reezocar may not have enjoyed this expertise otherwise.
- Reezocar steps up its development with a partner likely to provide them with a wide range of financing options (credit offers, balloon loans, lease-purchase, etc.) as well as digital tools for optimising remote sales processes: from finding a car to shipping choices.
- This start-up could then act as a trusted third party with car buyers looking to purchase a second-hand vehicle from France or Europe.
- Eventually, CGI and Reezocar will jointly build a far-reaching player on the market for buying/selling cars online in France.
- Start-ups focusing on second-hand car sales and leasing for individual customers have been making further progress these past years, hence managing to attract large-scale group’s attention. In recent news, Carizy was bought out by Renault to further grow on this market segment.
- CGI has long been a partner for dealerships selling new and used vehicles. This partnership with a start-up is also a way for them to consolidate their position on this sector.
- Other players are aiming for this industry: PayCar, Youpicar, and mavoiture.com, for instance. And, yet another platform, Kyump, is planning to start a funding round by early 2019.