Automotive technology company, Autochek has secured a $13.1million seed funding to accelerate expansion as well as scale up its technology.
The funding, co-led by follow-on investors, TLcom Capital and 4DX ventures also included participation from 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 capital will be deployed to bolster its core auto loan processing platform and deepen its footprint in West Africa, starting with its recent entry into Cote d’Ivoire.
According to a statement made available to LEADERSHIP, the company said it is rapidly expanding footprint across East Africa, following its recent acquisition of Cheki Kenya and Cheki Uganda, East Africa’s leading online auto marketplace.
Also as part of the investment by Mobility54, Autochek will be leveraging Toyota Tsusho’s vast retail network across 54 African countries to further deepen its expansion.
The company has also partnered 70 banks across the continent including leading regional players such as Access Bank, Ecobank, UBA, Bank of Africa and NCBA Bank.
Speaking on the next phase of Autochek’s rapid growth following its fundraise, founder and chief executive officer of Autochek, Etop Ikpe, said: “At Autochek, our driving force is to increase financing penetration on the continent; we have been amazed by the market adoption rate and the support from our banking partners in the countries we operate in.”
“We stepped into this space knowing we were tackling one of the most significant challenges for Africa’s automotive sector – the lack of a simplified, digital-first financing process. By combining our expertise and networks, we have been able to make an impact in the automotive sector.”
The Partner at TLcom, Andreata Muforo said: “Autochek has achieved significant traction in one of Africa’s key verticals and is making impressive progress in bringing transparency and efficiency in this complex and fragmented industry.
“The foundation of its growth has been the strong leadership of its CEO, Etop Ikpe, a repeat founder in the automotive market whose world-class experience gave us the confidence to initially invest in Autochek in 2020.
“We look forward to the next chapter of Autochek’s growth as it continues to unlock the major upside which has remained dormant in Africa’s automotive sector for decades.”