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Autochek Secures $ 13.1 Million in Seed Funding to Advance Technology and Accelerate Expansion – Nairametrics

Autochek, the automotive technology company facilitating auto finance across Africa, today secured $ 13.1 million in seed funding.

The round was co-led by the following investors, TLcom Capital and 4DX Ventures, the round also included the participation of existing investors, Golden Palm Investments, Enza Capital, Lateral Capital as well as new participants, ASK Capital and Mobility 54 Investment SAS (the venture capital arm of Toyota Tsusho Corporation / CFAO Group).

The new funding comes just under a year after Autochek’s $ 3.4 million pre-seed increase. As part of Autochek’s growth strategy, funding will be deployed to strengthen its primary auto loan processing platform and deepen its presence in West Africa, starting with its recent entry into Côte d’Ivoire. .

What Autochek does

Launched in October 2020 and operational in East and West Africa in 5 countries – Nigeria, Kenya, Ghana, Uganda and Côte d’Ivoire; Autochek combines technology, underpinned by data analytics to deepen auto finance penetration across the continent.

Additionally, the company is rapidly expanding its presence in East Africa, following its recent acquisition of Cheki Kenya and Cheki Uganda, East Africa’s leading online automotive marketplace. As part of Mobility54’s investment, Autochek will leverage Toyota Tsusho’s extensive retail network in 54 African countries to deepen its expansion.

Powered by its Residual Value Algorithm, Autochek has built in-house digital solutions such as warranty management, dealer management systems and a proprietary CRM system to manage stakeholder operations within the ecosystem such as financing vehicles, inspection, evaluation and inventory management.

Since its pre-seed increase in November 2020, the platform has experienced rapid growth in all of its activities, especially in the self-financing area where the number of loan applications processed increased from just 10 in November to over 46,000 to date.

Autochek has now partnered with 70 banks across the continent, including leading regional players such as Access Bank, Ecobank, UBA, and NCBA Bank. The startup has also achieved several key milestones since the start of the year, including more than 1,000 dealers on the Autochek network actively using the loan processing solution, and more than 15,000 certified and fundable vehicles on the Autochek marketplace. in its markets. During the year, Autochek also launched its truck financing platform and more recently the financing of new vehicles.

What they say

Speaking about the next phase of Autochek’s rapid growth following its fundraising, Etop Ikpe, founder and CEO of Autochek, said: “At Autochek, our driving force is to increase financing penetration on the continent; We were surprised by the market adoption rate and the support from our banking partners in the countries where we operate.

“We entered this space knowing that we were addressing one of the most significant challenges for the African automotive sector: the lack of a streamlined, digitally-driven financing process. By combining our expertise and our networks, we have been able to have an impact in the automotive sector.

We are extremely pleased with the progress we have made in this short period of time. With this funding and the support of our strategic investors, the entire Autochek team is dedicated to providing exceptional service to customers and partners, as well as the deployment of our technology across Africa.

Andreata Muforo, Partner at TLcom, said “Autochek has achieved significant traction in one of Africa’s key verticals and is making impressive strides in bringing transparency and efficiency to this complex and fragmented industry.

“The foundation for its growth has been the strong leadership of its CEO, Etop Ikpe, a repeat founder of the automotive market whose world-class background has given us the confidence to initially invest in Autochek in 2020.

“We look forward to the next chapter in Autochek’s growth as it continues to unlock the major advantage that has lain dormant in the African automotive sector for decades. ”

Walter Baddoo, Managing Partner at 4DX Ventures, said: “Autochek is revolutionizing the automotive industry in Africa by providing the convenience and the select advantage of an automotive e-commerce platform as well as the added flexibility of financing.

Walter noted that his company has enjoyed working with the Auocheck team so far and reaffirmed his enthusiasm for partnering with the company as it pursues the next phase of growth.

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