Instacarro

About Instacarro

Instacarro is a technology company operating in Brazil's used car market, functioning as an online C2B (consumer-to-business) marketplace. It was founded in São Paulo in 2015 by Argentine economist Luca Cafici, who serves as CEO, alongside Brazilian engineer Diego Fischer and Onil Pereyra. Cafici's background includes experience in the automotive marketplace sector, having worked for Carmudi in Vietnam before deciding to launch a startup in Latin America. The idea for InstaCarro was sparked during a conversation with a friend from the American investment fund FJ Labs, which later became an early investor.

The company's business model is designed to streamline the car-selling process for private individuals and provide a consistent source of inventory for dealerships. Individual car owners can schedule a vehicle inspection either at one of Instacarro's physical locations or at their home. Following the inspection, the vehicle is placed in a 24-hour online auction, accessible to a network of over 4,000 registered car dealerships across Brazil. The seller then receives the highest offer, and if accepted, Instacarro handles the payment and all associated paperwork, with no fee charged to the seller. The company's revenue is generated from fees and commissions paid by the purchasing dealerships. This model provides convenience and security for sellers while offering dealerships transparent, pre-inspected inventory.

Since its inception, Instacarro has transacted over R$1 billion and has expanded its services significantly. Initially focused on São Paulo, the company has since broadened its reach to other major Brazilian cities, including Rio de Janeiro, Curitiba, and Brasília, adapting its operations to include at-home inspections, a move accelerated by the COVID-19 pandemic. The platform also plans to introduce C2C (consumer-to-consumer) sales, allowing it to build its own vehicle portfolio and facilitate sales directly to end consumers, supported by partnerships for financing. The company has successfully raised significant capital to fuel its expansion and technological development, securing a total of $66.9M over seven funding rounds, including a Series B in 2021 and a Series C in 2024, with backing from investors such as J-Ventures, FJ Labs, and Rise Capital.