Cambodia-based investment holding company Iron Capital Plc has secured a $5.7-million Series A funding round to create the country’s first digitalised automotive ecosystem.
The transaction drew investment from an undisclosed strategic investor.
Iron Capital, which has investments in a digital media company and a garage franchise, intends to develop its own custom garage tech system and mobile app to provide its customers with easy access to its products and services.
Proceeds from the fund will be used to accelerate the development of the mobile app and its garage tech system, Iron Capital said in a statement. Version 1.0 of the mobile app is targeted to be released in the third quarter of the year.
Iron Capital co-founder Richard Seang said the Cambodian automotive market is currently dominated by small and inefficient independent mom-and-pop stores. Large car dealerships, on the other hand, are inaccessible to the average Cambodian consumer.
“Automotive consumers in Cambodia have long had to contend with low-quality spare parts and fraudulent repair services provided by irresponsible market players,” said Iron Capital CEO Lee Wei Ken. “Our goal is to level the playing field for consumers and create a new ecosystem through our ISO-certified car service centres, spare part supply chain, financial services and tie it all together via technology.”
He said Iron Capital aims to deliver 15% to 20% cost savings compared to dealerships for its customers through its ecosystem.
Iron Capital was founded in 2019 by automotive veterans Seang and Alice Sok, together with serial entrepreneur Tommy Sim, who co-founded venture capital firm Sim Brothers.
Iron Capital’s portfolio includes A Klasse Auto Co, Cambodia’s first dual-ISO certified private garage franchise and Advanced Auto Digital Media, which produces automotive content.