iQ Cars Raises, the largest digital automotive marketplace in Iraq, has successfully raised a seven-figure seed funding round in a significant step towards transforming the country’s fragmented and outdated car buying experience.
The investment was led by Euphrates Ventures, an early-stage venture capital firm with a growing interest in Iraq’s emerging tech ecosystem. With this funding, iQ Cars aims to expand its reach across the country, improve platform capabilities, and bring new levels of trust, efficiency, and transparency to Iraq’s vehicle market.
Revolutionizing the Way Iraq Buys and Sells Cars
Launched in 2020 by Iraqi entrepreneur Amer Salih, iQ Cars has rapidly grown into a trusted hub for both private car buyers and dealers. The platform now hosts over 34,000 live vehicle listings and works with more than 1,000 car dealers nationwide. It also boasts an active user base of over 420,000 registered members.
Salih, a software engineer and marketing expert with deep experience in Iraq’s auto market, started the company to solve a very specific problem: most Iraqis looking to buy or sell cars were stuck relying on inefficient, offline, and often unreliable methods. With little regulation and no central platform, car transactions were often riddled with scams, inflated prices, and lack of transparency.
“Our mission has always been clear—create a simple, trusted, and modern way for Iraqis to buy and sell vehicles,” said Salih. “This investment will help us expand our tools and services, build stronger partnerships with dealers, and reach more cities across Iraq.”
From Startup to National Market Leader
The company’s growth over the last four years has been impressive. In 2024 alone, iQ Cars recorded a 108% increase in overall revenue and a 115% increase in the number of qualified sales leads delivered to car sellers on the platform. These figures reflect the strong demand for online automotive services and growing digital adoption across Iraq.
What sets iQ Cars apart is its hyper-local approach combined with scalable technology. Every listing is verified, and buyers can access detailed information about the car, including images, pricing, and contact details. The platform offers services for both individuals looking for personal vehicles and dealerships trying to increase their sales.
The company also stands out for being the first Iraqi startup to legally register as a Private Joint Stock Company (PJSC), a milestone that not only gives it better access to financial tools and investment, but also sets a new standard of transparency and governance in the country’s startup space.
New Investment, Bigger Vision
The seed funding round will allow iQ Cars to scale up its operations and strengthen its digital infrastructure. Part of the capital will be directed toward developing AI-driven tools to match buyers with suitable listings more efficiently. The company is also investing in mobile-first solutions, recognizing that most users in Iraq rely on smartphones for internet access.
According to Grant Felgenhauer, Managing Partner at Euphrates Ventures, the decision to back iQ Cars was easy. “Amer and his team have built something truly valuable for the Iraqi market. Their platform is not just a tech solution—it’s a foundation for economic transparency in a critical industry,” he said.
Felgenhauer believes Iraq is on the cusp of a digital transformation, and platforms like iQ Cars will be vital in connecting consumers and businesses in a more trustworthy and modern way.
Launching iQ Fleet: A New Commercial Vehicle Marketplace
Expanding beyond private cars, iQ Cars recently launched a sister platform called iQ Fleet. This new venture focuses on commercial vehicles and heavy machinery—an often overlooked sector in the region. Businesses can now buy, sell, and manage fleets more effectively using the same streamlined features and user-friendly design that made iQ Cars popular.
“There’s a huge gap in how commercial vehicles are bought and sold in Iraq,” Salih noted. “We launched iQ Fleet to bring the same level of transparency and ease to businesses as we’ve done for private buyers.”
The commercial sector in Iraq is growing, particularly in logistics, construction, and oil services. With iQ Fleet, companies can manage inventory, post listings, and connect with verified buyers nationwide.
What’s Next for iQ Cars?
Looking forward, iQ Cars plans to invest in local customer support teams, further enhance its digital services, and expand into new urban markets such as Mosul, Kirkuk, and Basra. The team is also exploring partnerships with financial institutions to offer car financing and insurance directly through the platform.
Another area of interest is data analytics. By understanding buyer behavior and market trends, iQ Cars hopes to become not just a marketplace but also a source of insights for Iraq’s automotive economy.
Despite the economic and political challenges in Iraq, Salih remains optimistic. “This country is full of untapped potential, especially in the tech and digital space. We’re proud to be building something in Iraq, for Iraq.”
A Strong Signal for Iraq’s Startup Ecosystem
The success of iQ Cars is more than just a win for one company. It signals that Iraq’s startup scene is maturing and gaining the attention of serious investors. As more digital platforms rise, there is growing confidence that tech-led innovation can solve long-standing problems in areas like transportation, healthcare, education, and finance.
This funding round shows that even in challenging environments, well-executed ideas can find the support they need to thrive.
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