Autochek, the automotive technology company facilitating auto finance across Africa, has secured $ 13.1 million in seed funding. 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 subsidiary of Toyota Tsusho Corporation / CFAO Group).
With the new funding secured just under a year after Autochek’s $ 3.4 million pre-seed increase, the round was preempted by Autochek’s main investors – TLcom Capital and 4DX Ventures. As part of Autochek’s growth strategy, capital will be deployed to strengthen its main auto loan processing platform and deepen its presence in West Africa, starting with its recent entry into CÃ´te d’Ivoire. .
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.
Launched in October 2020 and operational in East and West Africa in 5 countries – Nigeria, Kenya, Ghana, Uganda and CÃ´te d’Ivoire; Autochek combines technology, underpinned by data analysis to deepen auto finance penetration across the continent.
Powered by its Residual Value Algorithm, Autochek has built internal 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, Bank of Africa 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.
Speaking on Autochek’s next phase of rapid growth following its fundraising, Etop Ikpe, Founder and CEO of Autochek, said, âAt Autochek, our driving force is to increase funding penetration across the market. continent; We were surprised by the market adoption rate and the support from our banking partners in the countries in which we operate. We entered this space knowing that we were addressing one of the most important challenges for the African automotive sector – the lack of an initial funding process. By combining our expertise and our networks, we have been able to have an impact in the automotive sector.
âWe 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 its customers and partners, as well as deploying our technology across Africa.
Andreata Muforo, Partner at TLcom, said: âAutochek has achieved significant traction in one of Africa’s key vertical markets 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 one. Autochek chapter. growth as it continues to unlock the major advantage that has lain dormant in the African automotive sector for decades.
Walter Baddoo, Managing Partner of 4DX Ventures, said: âAutochek is revolutionizing the automotive industry in Africa by providing the convenience and the advantage of selecting an automotive e-commerce platform as well as the added flexibility of financing. We have enjoyed working with the team so far, and they have demonstrated the talent, ambition and domain expertise to create a complete end-to-end ownership experience for clients. We are excited to partner with the team as they pursue the next phase of their growth. “
Despite being a $ 45 billion industry, the used car market in Africa only has a financing penetration rate of 5%, marking a major contrast to the rates of 98. % and 99% in Europe and the United States respectively. Due to a lack of transparency on the part of the auto industry, lenders have no way of understanding the present and residual value of vehicles, which creates a significant reluctance to issue loans.
However, thanks to Autochek’s established links with auto dealers and 150-point inspection and evaluation reports, the company can access vital information about the quality and condition of a range of vehicles, giving lenders the confidence and transparency they need to make informed decisions. Based on its algorithms, Autochek is also able to develop a credit profile on behalf of clients and effectively reduce a loan application process from 40-45 days to 48 hours.
The Autochek mobile app is currently available on Android and should launch soon on iOS.
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