Brazilian startup of the automotive sector, OCTA, receives R$ 8 million in investment to expand its participation and generate hundreds of new jobs

Octa will expand its participation in the automotive sector and generate hundreds of jobs – image: Anfavea

Brazilian startup in the automotive sector receives investment of R$8 million. OCTA had its Seed series round led by VOX Capital, in addition to other investors.

THE OCTA, a Brazilian company that transforms the automotive chain into a circular economy, received an investment of R$ 8 million, through funding led by the impact investment manager VOX Capital, in addition to other co-investors. The contribution will be used to expand the technology, products and commercial team and to launch products that complete the offer of used parts and expand the concept of circularity on the startup’s platform.

‘The opportunity is huge in economic terms’, highlights OCTA CEO

co-created by Fisher, leader and reference in Venture Building in the country, OCTA is a company that transforms the automotive chain into a circular economy, creating bridges between fleets that have vehicles that for some reason no longer fulfill their function, being inactive, beaten, burned or scrapped, directing them to the Vehicle Dismantling Centers (CDVs), responsible for carrying out the proper dismantling with good technical practices, taking to the final consumer parts that meet a standard of quality and affordable price.

According to the company, only 10% of the total number of vehicles is correctly destined for recycling in Brazil, while in USA and in Europe, this percentage goes beyond 80%. “The opportunity is huge in economic terms, but it also brings a very nice potential to reduce vehicle theft and CO2 emissions in the chain, in addition to improving access to more economical, fair and green vehicle maintenance” Arthur Rufino, CEO of OCTA.

OCTA’s objective is to create a new market in Brazil to divert the current consumption of parts in illegal scrapping to companies committed to good practices, generating benefits for the economy, public safety and the environment. The startup does this through the active sale of vehicles to dismantling centers and is developing the sales front of used parts to the market, seeking to close the fleet’s circularity this year. 

Plans for the coming months

In the coming months, OCTA intends to launch a marketplace for used parts with guaranteed quality and origin for fleet owners. This product aims to close the circularity of customers. In addition, the company will increase the team in areas such as technology, products and other sectors.

The company launched the first phase of its circularity solution from automotive chain in September 2021 and in the first 6 months of operation, it has already generated more than R$ 2 million in transactions, allowing for the reuse of parts and recycling of more than 650 tons of metals, avoiding the emission of 800 tons of CO2.

More than 100 companies are already part of the Octa network, including fleet owners and CDVs. By the end of the year, OCTA intends to grow about five times, reaching the mark of 500 registered companies, providing the reuse and recycling of 3,000 tons of metals through its platform and having more than 30 employees.  

Third company investment for expansion in Brazil

“Since the conception of Octa, we have envisioned the need to have an investor with solid experience in high-performance construction of impact and its narrative. We are very proud to have VOX Capital as this partner, a pioneering impact investing fund, attesting to the quality of what we have built so far and fostering the transformation that we will bring to society and the automotive chain”, says Daniel Oelsner, executive at Fisher. . 

This is OCTA’s third investment, in 2021 the startup received R$1 million in its first round (pre-seed), consisting only of individuals. Currently, the startup was one of those selected by Google for the Black Founders Fund, an initiative that invests financial resources, without any shareholding, in startups founded and led by blacks in Brazil.

“Enabling circularity in the automotive parts market has enormous potential, but it is a very specific segment and, in order to change and digitize it, it is necessary to know it well. Together, Arthur and Daniel have put together a framework that has familiarity with the market, insight into the importance of social and environmental impact, experience building digital businesses, and track record track record. In addition, both recruited excellent professionals to compose the team”, points out Rafael Campos, portfolio manager at VOX Capital.