$13.1 M seed funding secured by Nigeria’s Autochek for West Africa expansion
Autochek, a Nigerian auto-tech firm, has secured a seed investment round of $13.1 million to expand its core vehicle loan processing platform and expand its reach in West Africa.
Autochek’s goal is to develop digital solutions that will improve and allow a smooth and secure automobile commerce experience in Africa, beginning with Nigeria and Ghana.
It promises to employ technology to improve African consumers’ automotive purchasing and selling experiences by providing a single platform for all of their automotive needs, from sourcing and financing to after-sales service and warranties.
The company began in September after acquiring ROAM Africa’s automotive markets Cheki Nigeria and Cheki Ghana and obtained a pre-seed fundraising round of US $3.4 million shortly after. It has expanded to Kenya and Uganda in addition to Ghana, with the latter two launches aided by the acquisition of Cheki properties.
Following a US $13.1 million seed fundraising round, it has recently launched operations in Ivory Coast, with West Africa as a primary emphasis. The round was co-led by follow-on investors TLcom Capital and 4DX Ventures, and included previous investors Golden Palm Investments, Enza Capital, and Lateral Capital, as well as new investors, ASK Capital and Mobility 54 Investment SAS – Toyota Tsusho Corporation’s venture capital arm.
Starting with the Ivory Coast, the funds will be used to strengthen its core car loan processing technology and expand its reach throughout West Africa. Autochek will use Toyota Tsusho’s extensive retail network throughout 46 African nations as part of Mobility54’s investment to enhance its growth.
“At Autochek, our driving force is to increase financing penetration on the continent; we have been amazed by the market adoption rate and the support from our banking partners in the countries we operate in. We stepped into this space knowing we were tackling one of the most significant challenges for Africa’s automotive sector – the lack of a simplified, digital-first financing process. By combining our expertise and networks, we have been able to make an impact in the automotive sector,” said Etop Ikpe, founder and chief executive officer (CEO) of Autochek.
“We are extremely delighted with the progress we’ve made in a short amount of time. With this funding and the support of our strategic investors, the entire team at Autochek are dedicated to delivering exceptional service for customers and partners, as well as deploying our technology across Africa.”
Autochek has gained substantial traction in one of Africa’s important verticals, according to Andreata Muforo, a partner at TLcom, and was making great progress in bringing transparency and efficiency to a complicated and fragmented business.
“The foundation of its growth has been the strong leadership of its CEO, Etop Ikpe, a repeat founder in the automotive market whose world-class experience gave us the confidence to initially invest in Autochek in 2020. We look forward to the next chapter of Autochek’s growth as it continues to unlock the major upside which has remained dormant in Africa’s automotive sector for decades,” she said.
Autochek, according to Walter Baddoo, managing partner at 4DX Ventures, is revolutionising the African car sector by combining the ease and choices of an auto e-commerce platform with the extra flexibility of financing.
“We have enjoyed working with the team so far, and they have demonstrated the talent, ambition, and domain expertise needed to build a complete end-to-end car ownership experience for customers. We are excited to partner with the team as they pursue the next phase of their growth,” he said.
