Autochek, the Nigerian-based automotive technology company, has continued its impressive streak of acquisitions with a majority stake in AutoTager, a promising Egyptian automotive technology company. This acquisition marks Autochek’s first foray into Egypt, the second-largest automotive market in Africa. The deal, which is Autochek’s sixth acquisition in under two years, has positioned the company as the leading Pan-African automotive technology company, with operations in nine African countries and over 2,000 dealers and workshop locations.
AutoTager was founded in 2021 by Amr Rezk, a serial entrepreneur who has operated and invested in different geographies across Africa and the Middle East. Autochek’s Co-founder and Group CFO, Olajide Adamolekun, was impressed by Rezk’s background and track record, stating that they would be valuable as Autochek enters the Egyptian market and continues to enhance the automotive finance value proposition across Africa. AutoTager CEO and Founder, Amr Rezk, believes the acquisition will provide his company with a wide menu of options and cutting-edge tools to offer its customers a unique proposition.
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Autochek’s expansion has been relentless, with the company making three acquisitions in less than a year. In Q3 2021, Autochek acquired two online vehicle sales platforms, Cheki Kenya and Cheki Uganda. The company continued its expansion into French-speaking Africa, acquiring CoinAfrique, a classifieds network available in twelve French-speaking African nations, deriving at least fifty percent of its monthly transactions from automotive sales. Through this acquisition, Autochek wants to expedite the rollout of its vehicle lending service in French-speaking Africa, particularly in CoinAfrique’s markets.
Autochek’s most recent acquisition is Kifal Auto, Morocco’s largest automotive technology startup. The purchase marks the first significant expansion of a West African company into North Africa, laying the groundwork for an ideal pan-African collaboration to spur innovation in the continent’s booming automotive market. Kifal Auto is known for its transparent process throughout transactions and providing access to financing, mechanical breakdown warranty, insurance subscription, and other value-added services.
Morocco is a critical market for Autochek and one of the most mature in Africa, with over 180,000 new automobiles and 560,000 used cars sold each year. The country’s automotive sector is predicted to grow steadily over the next five years, reaching almost $14 billion. Autochek believes Morocco is an innovative technology hub, powered by a thriving startup ecosystem that will benefit the automotive industry in the next years. With the acquisition of Kifal Auto, Autochek is in a unique position to capitalize on the full potential of Morocco’s dynamic used automobile industry. The company plans to deploy solutions to address the challenges of the value chain and further integrate the pan-African automobile sector to offer a compelling proposition for all players: customers, manufacturers, financial institutions, and other stakeholders.
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Autochek’s acquisition spree is part of its strategic plan to become Africa’s leading automotive technology company by expanding its operations and services across the continent. By acquiring different companies with unique offerings and capabilities, Autochek hopes to leverage their strengths to grow its market share and improve the automotive finance value proposition across Africa. The company’s expansion plans and focus on automotive finance have been fueled by increased demand for affordable and accessible vehicle ownership, particularly in Africa’s rapidly growing urban areas.
Autochek’s acquisition of AutoTager, its first acquisition in Egypt, marks another milestone in the company’s rapid expansion across Africa. The company’s acquisitions have positioned it as the leading Pan-African automotive technology company, with a presence in nine African countries and over 2,000 dealers and workshop locations.
Acquisitions as a Strategy For Autochek
Autochek’s recent acquisitions demonstrate a clear and deliberate strategy of expanding its presence across Africa through a combination of organic growth and strategic acquisitions. By acquiring companies with local expertise and established customer bases, Autochek is able to enter new markets more quickly and effectively.
One key strategy that stands out is Autochek’s focus on the automotive finance value proposition. By offering financing solutions for vehicle purchases, Autochek is able to provide a more comprehensive and accessible service to customers across Africa. This focus on finance is evident in the CoinAfrique acquisition, where Autochek plans to leverage the expertise of CoinAfrique’s founders to enhance its own vehicle financing offerings.
Another notable strategy is Autochek’s focus on local partnerships and collaborations. By partnering with local companies and entrepreneurs, Autochek is able to tap into local knowledge and expertise, and build relationships with key stakeholders in each market. This is evident in the acquisition of Kifal Auto in Morocco, where Autochek is able to leverage Kifal Auto’s reputation as a reliable partner for buying and selling used cars in Morocco.
Autochek’s acquisitions also demonstrate a clear focus on expanding its reach across the continent. By acquiring companies in French-speaking Africa and North Africa, Autochek is able to establish a pan-African presence and provide solutions for stakeholders in a wide range of markets. This focus on pan-African growth is also evident in the acquisition of AutoTager in Egypt, which marks Autochek’s entry into the second-largest economy and automotive market in Africa.
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Overall, Autochek’s acquisitions demonstrate a clear and deliberate strategy of expanding its presence across Africa through a combination of organic growth and strategic acquisitions. By focusing on the automotive finance value proposition, local partnerships and collaborations, and pan-African growth, Autochek is well-positioned to become a leading player in the African automotive technology industry.
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Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert.
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard