Ayodeji Audu’s journey into tech entrepreneurship began with a frustrating experience at a Nigerian bank in 2019. When Audu attempted to secure a loan using his vehicle as collateral, the bank’s valuation of his car was unexpectedly low. This encounter sparked the idea for Reown, a startup aiming to create Africa’s largest vehicle history database.
The Genesis of Reown
Audu’s background in biochemistry and medical sales didn’t directly lead him to tech entrepreneurship. However, his stint in medical sales honed his sales skills, and he soon co-founded Swipe, a fintech company providing credit cards to young adults in Nigeria. Swipe achieved significant milestones, including acquiring over 100,000 users and raising $500,000 in pre-seed funding. By 2023, Audu exited Swipe to focus on Reown.
Reown’s Value Proposition
Reown’s core idea is that vehicle history data can unlock value across multiple sectors, including lending, insurance, ride-hailing, and vehicle rentals. Initially, the startup attempted to collect data from government sources and vehicle mechanics. However, it encountered challenges due to limited government touchpoints and unstructured data from mechanics.
To address this, Reown developed a garage management software tailored to the Nigerian market. This software not only streamlined operations for mechanics but also served as a data collection tool. The platform allowed mechanics to log vehicle data, manage invoices, and schedule appointments, while customers could track repair statuses and communicate with mechanics.
Challenges and Adaptation
Despite initial progress, Reown faced setbacks, including a failed acquisition deal with a foreign multinational. The deal fell through due to disagreements over the company’s future direction, leaving Reown with a depleted runway and forcing it to lay off employees.
Pivoting to Electric Vehicles
Undeterred, Audu remains focused on Reown’s long-term vision. The startup is now betting on electric vehicles (EVs), which are gaining traction in Nigeria due to soaring petrol prices. Reown has modified its garage management software to accommodate EVs and is planning a vehicle financing scheme for gig workers. This scheme will be managed through a mobile app offering after-sales support, including locating charging stations and accessing battery swap services.
Unlocking Value with Vehicle History Data
Audu identifies three primary applications for Reown’s collected data: asset-backed lending, car insurance, and data monetization. By providing detailed vehicle history, Reown aims to enable data-backed pricing that financial institutions can trust. In the insurance sector, better data could reduce premiums for safe drivers. Additionally, Reown plans to monetize its data by serving it via an API to lenders, insurers, and used car marketplaces.
The Road Ahead
Reown is currently pre-revenue and is rebuilding after the failed acquisition. The startup is doubling down on product development, with a previous beta test showing promising results. Audu remains optimistic about Reown’s potential to resonate across Africa, having already attracted interest from users in Ghana. As the startup continues to innovate, it is poised to make a significant impact on the African automotive and financial sectors.
