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Autochek Secures Massive Funding to Drive Auto Finance Across Africa

Autochek Secures $13.1mn Seed Funding.

Autochek by Techrectory
Autochek by Techrectory

Autochek, the rapidly growing auto finance and e-commerce platform, has achieved a significant funding milestone, securing a staggering NGN 500 billion in a funding round co-led by TLcom Capital and 4DX Ventures. Existing investors, including Golden Palm Investments, Enza Capital, and Lateral Capital, joined the round, along with new participants ASK Capital and Mobility 54 Investment SAS, the venture capital arm of Toyota Tsusho Corporation and CFAO Group.

This major funding comes just under a year after Autochek’s successful pre-seed raise of $3.4 million. TLcom Capital and 4DX Ventures, as lead investors, expressed strong confidence in the company’s vision and potential, preempting the round.

With this substantial capital injection, Autochek aims to strengthen its core auto loan processing platform and expand its footprint in West Africa, starting with its recent entry into Cote d’Ivoire. The company has also been rapidly expanding across East Africa following its acquisition of Cheki Kenya and Cheki Uganda, the leading online auto marketplaces in the region.

Launched in October 2020, Autochek has quickly become operational in five African countries – Nigeria, Kenya, Ghana, Uganda, and Cote d’Ivoire. The company employs technology and data analytics to increase auto finance penetration across the continent. Through its in-house digital solutions, including Collateral Management, Dealer Management Systems, and a proprietary CRM system, Autochek streamlines operations within the automotive ecosystem, facilitating vehicle financing, inspection, valuation, and inventory management.

Since its pre-seed raise in November 2020, Autochek has experienced remarkable growth, especially in auto-financing. The number of processed loan applications has surged from just 10 in November to over 46,000 to date. Collaborating with 70 banks across Africa, including major players like Access Bank, Ecobank, UBA, Bank of Africa, and NCBA Bank, Autochek has established itself as a key player in the auto finance sector.

Throughout 2023, Autochek achieved significant milestones, including over 1,000 dealers actively using its loan processing solution and more than 15,000 certified and financeable vehicles available on the Autochek marketplace across its markets. The company successfully launched its truck financing platform and ventured into financing brand-new vehicles.

Etop Ikpe, Founder and CEO of Autochek, emphasized the company’s commitment to increasing financing penetration in Africa’s automotive sector. He acknowledged the strong market adoption rate and the support from banking partners in the countries of operation. Ikpe believes that by addressing the challenge of a simplified, digital-first financing process, Autochek has made a significant impact on the automotive industry.

Andreata Muforo, a partner at TLcom, praised Autochek’s impressive progress in bringing transparency and efficiency to the complex and fragmented industry. She highlighted the strong leadership of Etop Ikpe, the CEO, whose world-class experience in the automotive market instilled confidence in their initial investment in Autochek in 2020.

Walter Baddoo, managing partner at 4DX Ventures, echoed the sentiment, acknowledging Autochek’s revolutionary approach to the African auto industry, combining the convenience and selection advantage of an auto e-commerce platform with flexible financing options. He expressed confidence in the team’s talent, ambition, and domain expertise in creating a complete end-to-end car ownership experience for customers.

Africa’s used car market is valued at $45 billion; however, it suffers from a low financing penetration rate of just 5%, in stark contrast to Europe’s 98% and the USA’s 99%. The lack of transparency in the automotive sector creates reluctance among lenders to issue loans due to the inability to assess the present and residual value of vehicles.

Autochek’s unique position, with links to car dealerships and 150-point inspection and valuation reports, empowers lenders with crucial information about vehicle quality and condition. This newfound trust and transparency enable informed decision-making, revolutionizing the financing process.

Leveraging its advanced algorithms, Autochek can develop credit profiles on behalf of customers, significantly reducing the loan application process from an average of 40-45 days to just 48 hours, enhancing efficiency and customer experience.

The Autochek mobile app is currently available on Android, with plans for its launch on iOS in progress. As the company continues its rapid growth and expansion, it remains dedicated to delivering exceptional service, deploying cutting-edge technology, and driving transformative change across the automotive landscape in Africa.

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See also Chioma Daniel Advises Startups on Navigating 2023's Funding Drought

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Written by Grace Ene

Author for Techrectory.

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