After acquiring two online vehicle sales platforms in the third quarter of 2021, Autochek is continuing its buyout operations, this time in French-speaking Africa with CoinAfrique.
Classifieds network, CoinAfrique, is available in twelve French-speaking African nations, deriving at least fifty percent of its monthly transactions from automotive sales. Through this acquisition, the Nigerian wants to expedite the rollout of its vehicle lending service in French-speaking Africa, particularly in CoinAfrique’s markets.
The Nigerian automobile technology development firm was already functioning in nine East, West, and North African countries. It is expanding its operations to twelve additional French-speaking markets on the continent.
Francophone Africa is home to some of the fastest-growing economies on the continent and we are excited to be expanding Autochek’s footprint in this region with the acquisition of CoinAfrique, the number one classified marketplace for French-speaking Africa. pic.twitter.com/ji8F3qu7TF
Following this purchase, Etop Ikpe (picture), Managing Director and Co-Founder of Autochek, stated that he was “looking forward to leveraging the expertise of CoinAfrique’s founders to enhance the value proposition of vehicle financing across the continent.”
Autochek has previously bought online vehicle sales platforms well before CoinAfrique. The automotive technology startup bought the Cheki Kenya and Cheki Uganda platforms in September 2021.
With the new acquisition, Autochek intends to streamline the process of purchasing vehicles by offering finance and other value-added services. The classifieds business of CoinAfrique will continue to operate with the incorporation of its partner’s auto finance product, which will increase the availability of credit for auto purchases.
By focusing on CoinAfrique, the Nigerian company is targeting French-speaking African markets such as Côte d’Ivoire and Senegal, where the sale of new automobiles is experiencing tremendous development.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
After two years of strategic support and a seed investment of 3 million dirhams in equity in KIFAL Auto, Moroccan accelerator the 212 Founders has made its first exit, following the recent purchase of the startup by Nigerian autotech company Autochek.
This acquisition is also an opportunity to accelerate the growth of KIFAL Auto inside the wider Autochek company, which is now operating in five African nations and aims to become the top pan-African intermediary in the used-car market.
Nizar Abdallaoui Maane, founder of Kifal Auto
As a reminder, the 212 Founders program has funded 12 Seed and pre-Series A startups with 57 million Dirhams and a portfolio transfer operation since 2019.
The strategic acquisition has elevated KIFAL Auto to a leading position in Morocco. KIFAL Auto is a 2019-launched online platform that has become a trusted partner for the majority of Moroccan consumers throughout the full process of purchasing and selling used cars.
The startup benefited from strategic and operational support from the 212 Founders teams throughout its incubation, allowing it to quickly stabilize its business model, accelerate sales, and position itself as a major independent player in the Moroccan market with 6 locations across the north African country.
Following this incubation period, 212 Founders enabled KIFAL Auto to raise their first Seed investment of 3 million dirhams.
The startup now manages all of its procedures for the purchase and sale of used vehicles on behalf of the client by offering a transparent and simplified approach, as well as other complementary services with high added value such as automotive expertise, mechanical warranty, financing solutions, and so on.
“We applaud the 212 Founders teams’ early confidence in our project. This assistance has enabled us, in particular, to establish a market reputation, strengthen our operations, and improve our technology, allowing us to become a key player in the sale of used vehicles in Morocco today. Being a “212 Founders startup” increased our international visibility and piqued the interest of various players, including Autochek, with whom we agreed to collaborate. It seemed logical to sell KIFAL Auto to Autochek because we share the same principles, vision, and a strong goal for Morocco and the African continent,” Nizar Abdallaoui Maane, founder of Kifal Auto, stated.
“Since the inception of 212 Founders, we have been happy to play a catalytic role in the Moroccan Tech industry by not only supporting and investing in companies, but also by enabling them to merge and expand more swiftly and peacefully within benchmark groups in their sector. We won this bet by providing two years of support to KIFAL Auto and accompanying them until their incorporation into the Autochek framework,” Youssef Mamou, Director of the 212 Founders Program, said.
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. You can book a session and speak with him using the link: https://insightsbyexperts.com/view_expert/charles-rapulu-udoh
Autochek, an African automaker, has raised $13.1 million in a seed round, almost a year after raising $3.4 million in a pre-seed round in November 2020. Lead investors in this round include pan-African venture capital firms TLcom Capital and 4DX Ventures, which led the startup’s pre-seed round. Golden Palm Investments, Enza Capital, and Lateral Capital were among the current investors who contributed. ASK Capital and Mobility 54 Investment SAS, the venture capital arm of Toyota Tsusho and CFAO Group, were among the first investors. So far, Autochek has raised a total of $16.5 million in two financing rounds.
The company, which is currently based in West and East Africa, has its sights set northward and southward on the continent, specifically Egypt and South Africa.
“We are speaking to a few partners around potentially how we can make entry and I think between now and probably Q2 next year, we would have kind of identified the best kind of product-market fit for those markets. But we expect that by Q3, we should have a presence in those markets,” said Ikpe.
Autochek intends to use the funds to expand its auto loan processing infrastructure, expand its foothold in West Africa, and, eventually, leverage Toyota Tsusho’s huge retail network in 54 African countries to continue its expansion.
Investors are flocking to Autochek because since its launch in August of last year, the company, led by CEO Etop Ikpe, has seen incredible growth in demand, not only from consumers but also from its business and banking partners.
For instance, Cheki’s companies in Kenya and Uganda were recently acquired from Ringier One Africa Media (ROAM) by Autochek. Autochek purchased Cheki Ghana and Cheki Nigeria to start its company, and the sale was completed over a year later. Despite the fact that acquisitions have accounted for the majority of the company’s expansion strategy to this point, it did not do so in the Ivory Coast, instead partnering with CFAO Group to introduce its marketplace to the Francophone region.
Again, Autochek has 12 bank agreements when it announced its pre-seed round last year. The number of banks has grown to almost 70, including Access Bank, Ecobank, UBA, Bank of Africa, and NCBA Bank. According to the firm, these banks have processed over 46,000 loan applications to date, up from only ten in November.
Furthermore, Autochek’s decision to expand its vehicle categories beyond used cars has resulted in a significant increase in the company’s size. More than 1,200 dealerships already use Autochek’s network, and over 15,000 financeable vehicles are on the market across all markets since the company’s financing solution for trucks and new automobiles was launched.
TLcom Capital re-invested in the one-year-old company because of Ikpe’s drive and experience, as well as Autochek’s blitzscaling expansion, according to partner Andreata Muforo. It’s because the team has shown “the skill, ambition, and domain understanding needed to construct a complete end-to-end car ownership experience for clients,” according to Walter Baddoo, managing partner at 4DX Ventures.
A Look At What Autochek Does
Launched in October, 2020 and managed by a developer team in Lagos and Nairobi, Autochek is a network for consumers and businesses to buy cars, sell cars, service cars, and finance cars sales. The startup was founded by former Cars45 chief executive officer (CEO) Etop Ikpe. Autochek’s model, according to its CEO, is based on a marketplace concept, with a focus on finance and after-sales services. Dealerships, banks, and end users are its main customers (those who buy cars on the platform).
When a dealership registers on the platform, Autochek sends a workshop to begin inspecting the dealership’s automobiles. The assessments and algorithmic checks on Autochek’s system serve to provide a sense of the car’s status and condition, evaluating whether it is in a condition to be financed. Following the examination, Autochek notifies all of the banks on its platform that the car is ready for financing and places it on the market. The banks respond with their offers after a thorough review.
After Autochek builds a credit profile, the end-user can choose from a pool of bank financing rates and apply to buy the car. The loan application procedure takes roughly 48 hours, compared to 40–45 days in the sector. Autochek assists banks with disbursement and ensures that the vehicle is registered, insured, and tracked once it has been sorted. The car is then fed into Autochek’s after-sales network, where it is free-of-charge maintained anytime mechanical faults arise.
The company generates revenues through fees charged on consumer transactions and commissions paid by dealers and banks and service shops on the platform. Consumers can sign up and use the Autochek app for free.
The company’s recent entrance into East Africa comes at a time when automotive technology businesses like as Moove, Planet42, and FlexClub are attracting investor interest as the demand for flexible vehicle finance continues to expand across the continent.
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions. He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance. He is also an award-winning write
The vision of expanding its services across major markets in the West African sub-region which was hampered by the Covid-19 pandemic last year has come to fruition with the opening of the Accra office. The management of the Nigerian based auto-tech startup Autochek envisaged that with greater integration occasioned by the Africa Continental Free Trade Agreement (AfCTA) the time for pan-African expansion drive is now and the first launchpad outside Nigeria is Accra Ghana.
Etop Ikpe, CEO of Autocheck
The startup aims to build digital solutions that will enhance and enable a seamless and safe automotive commerce experience across Africa, starting with Nigeria and Ghana.It plans to use technology to transform the automotive buying and selling experience for African consumers, by creating a single marketplace for consumers’ automotive needs, from sourcing and financing to after sales support and warranties.
The startup only launched in September but has already acquired automotive marketplaces Cheki Nigeria and Cheki Ghana, as well as raised a US$3.4 million pre-seed funding round. It has now commenced operations in Accra, Ghana to support the delivery of technology solutions for one of Africa’s most advanced automotive markets. Building on the work Cheki Ghana has done over the last decade, Autochek is combining technology and data to create a single marketplace for car sales, car loans and car repairs in Ghana.
Consumers in Ghana can now buy cars and access car loans via the Autochek Android app or website, knowing that every listed car has undergone a 150-point inspection process. The inspection service can also be used for cars outside the Autochek network. Autochek will also enable more effective sourcing and affordable car loans, as well as car repairs and warranties.
Autocheck has also onboarded auto dealers and auto workshops from across the country who can now rely on consistent leads that have been filtered to validate their interest. Car owners can book maintenance and repairs via the app and the website with the confidence that their cars will be in the hands of standardised workshops and technicians from Autochek’s partner network. By focusing on the needs of both customers and dealers, Autochek is building an ecosystem of solutions that will deliver an unrivalled customer experience.
Etop Ikpe, CEO of Autocheck said that they are excited to be in Ghana and to be part of the ecosystem, adding that the government is doing a lot of great work to support the automotive industry but there is also a need to make sure that vehicles meet a certain standard before they are bought or sold locally. “This is where we hope to bring our expertise to create an effective and efficient marketplace for everybody” he added.
“We have also seen an increase in demand for tech-enabled solutions as people and businesses respond to the COVID-19 pandemic and the challenges that have come with it. This tech-enabled approach will enable a better customer experience and facilitate transparency and ease of doing business, which in turn translates to increase in transactions and more efficient business operations.”
Yvonne Ahlie, head of business operations for Ghana at Autochek, said the automotive industry in Ghana was one of the most advanced in Africa, but that there is still some work to be done, especially with regards to the day to day experience for consumers, dealers and workshops.
“The fragmentation of the industry means most players are operating in silos and are not able to reap the full benefits of what the market has to offer. There is also a dearth of comprehensive data that dealers and workshops can use to underpin business decisions and this is impacting their performance. This is where Autochek will make a difference by combining data and technology to transform the automotive transaction ecosystem and enable excellence across the value chain,” she said.
Over the next year, Autochek aims to onboard more than 500 dealers and workshops across various cities in Ghana, making it easier for Ghanaians across the country to access the automotive services they need.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry
