A car matchmaking start-up has raised one million dollars to launch its business in Australia.
Mogo raised $1m from the Scaleup Mediafund as it aims to change the online car-buying process.
It will allow people who have already done research and chosen their preferred vehicle to reach out to dealerships in their area.
If a dealership has the vehicle the buyer wants, they can respond with their price, paying as little as seven dollars for the lead.
Co-founders Vanya Andropov and Greg Harris have been testing the portal and getting ready for the Australian launch.
Andropov says more than a third of the dealerships in its test area have registered with Mogo, and growth is continuing.
“There’s a lot of pain out there in the industry,” Andropov says.
In the trial period, just over 60% of customers who used the platform went on to purchase a car within two weeks.
Andropov says Mogo customers were not interested in the ‘chat feature’ of the platform but wanted to talk to the dealers right away.
The funding from the scaleup Mediafund will be directed towards scaling the Mogo platform rapidly. The fund is also backed by Nova, Foxtel and Channel Ten.
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