"I offered up my car for sale," Israeli singer Omer Adam recounts. "One couple showed interest in the car, we agreed on a price, and when they were supposed to transfer the money, they gave me a fake bank check. We realized this only a moment before we signed and canceled the deal."
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Today, Adam, together with a number of partners and the Cal credit company, is launching CarPay, an app for the secure buying and selling of used cars. The new application will enable secure ownership transfer and payment for second-hand cars, aimed at preventing fraud.
"One of the main issues in any car buying and selling transaction is the concern that the party initiating the transaction is exposed to fraud and could lose both the car and their money," Tomer Bar-Or, CarPay's CEO, explains.
"Since there's currently no mechanism in Israel that secures both sides of the transaction, one of the parties has to perform the action first, thereby risking their money or property. Today, millions of buyers and sellers have no choice but to rely on someone they just met and carry out a significant transaction unprotected."
"Our solution is based on a secure account in CarPay, through which both parties are protected from fraud. The seller's money is secured, and at the same time, the buyer is ensured that ownership of the car will be transferred to their name, or their money will be returned to them," he added.
"The potential market for used car sales in Israel is enormous. Every year, transactions amounting to over 60 billion shekels take place, with an average price of 70,000 shekels per car," he said.
Alongside Adam, Maor and Snir Malul, owners of the Israel Europe real estate company are also partners in the company. "My acquaintance with Maor and Shnir goes back about ten years," Adam said.
Adam explains how the idea for the app came to be. "I was interested in investing in the real estate field, we met, and the rest is history. We became business partners in 'Israel Europe' and now in CarPay."
"We bought land in strategic locations – lucrative properties – and, a few years ago, we also entered the server farm market," Adam says. "Today, we're planning several projects in Israel worth 1.5 billion shekels."
To what extent are you involved in the management of the company, or do you just lend your name to promote it?
"I'm involved in everything I do in life. I love being active and doing my part, I'm here because I believe people truly need our product. It's unreasonable that in 2023 there wouldn't be a mechanism in Israel to protect private people who want to buy and sell their cars."
"I've been investing in various fields for years, such as real estate, data centers, fintech and music," Adam adds. "I meet with 2-3 companies and entrepreneurs every week – some of my investments are more passive, but the other part, which I love and believe in, is entrepreneurship, like in CarPay."
"We started with only the idea, and built everything from there: A team, a product, business connections with Cal to fund car transactions, and more. For me, seeing this project taking shape is already a victory."
How much money have you invested in this venture?
"As one of the founders, we invested, and we are still each investing in what's needed to bring the project to the highest level, including in staff and personnel. I can say that eight months ago, we raised $3.6 million based on a company valuation of $12 million."
Does Dubai also have the same car market issues as Israel?
"No. In Dubai, punishment and surveillance are severe in all matters, not just in the car market. The whole city is filled with cameras, and that's one of the reasons people generally don't go there to scam others."
"In Israel, the laws and enforcement regarding this issue aren't well implemented, which increases the need for a product like CarPay," Adam says. "We're also exploring several foreign countries to expand to in the project's next stage, and later on to expand to other peer-to-peer buying and selling markets."