WelaDela, the world’s first online marketplace for buying and selling used cars through a raffle draw, has launched an equity crowdfunding campaign on Eureeca to raise $250,000.
UAE-based WelaDela helps car owners sell their used cars with a simple, fun raffle draw for the desired price to people who want to get their hands on the best deal without paying much. The process begins with the seller posting an ad for his used car. WelaDela then divides the car price by six hundred and sells that many items. Once all items are sold, a raffle draw is conducted with oversight from the concerned Government department. During the process, customers also earn redeemable reward points so even if they don’t win the car, they can redeem their reward points for future purchases on website.
“Like most successful businesses, idea for WelaDela came during a random uneventful moment and bad experiences led to its launch,” explains Usama Arshad, Founder and CEO of WelaDela. “Now, WelaDela is shaking up the whole used car business and already have thousands of happy customers since its launch.”
The number of passenger cars in use in the GCC region is expected to grow at 5% annually from an estimated 10.3 million in 2015 to 13.2 million in 2020. There were 468,265 cars listed online in the UAE in 2018, with a total value amounting to AED 32 billion.
“The market is expected to head towards consolidation as classified portals are gaining prominence as one stop solution for used car. Reducing average ownership age of used car is another key factor for higher price of used cars. A number of operational and marketing changes are expected to happen in the market as the companies are becoming more customers centric,” Arshad adds.
So how does WelaDela stand out from the crowd?
– A highly profitable business model with multiple revenue streams
– No direct competition, as of now
– Low investment and high returns
– Licensed in mainland Dubai, UAE
– Fully regulated process
– Special permits are obtained from concerned government department for each raffle draw
– Raffle draws are conducted by Government Official after necessary verification of all the entries
To date, WelaDela has 7000+ registered users and 4700+ App downloads within seven months. The company was also ranked among top 50 most promising startups by Dubai Chamber of Commerce and Industry and represented the UAE in GITEX Future Stars and was ranked among top 100 most promising startups in the world.
The funds raised from WelaDela’s equity crowdfunding round on Eureeca will go towards product and geographic expansion, as well as marketing and customer acquisition, and working capital.
Their funding round is set to close on 2nd October 2019.