NigeriaвЂ™s Autochek raises $3.4M for vehicle product product product sales and service platform
Nigeria based Autochek that is startup looks bring the product product product sales and servicing of automobiles in Africa on line. The newly launched endeavor has closed a $3.4 million seed-round co-led by TLcom Capital and 4DX ventures toward that aim.
The raise comes fresh away from AutochekвЂ™s acquisition of digital car sales marketplace Cheki in Nigeria and Ghana september. In addition follows the departure that is recent of CEO Etop Ikpe from Cars45 вЂ” the startup he co-founded, now owned by Amsterdam based OLX Group.
ThatвЂ™s great deal of news in a short-time for Ikpe. Their company that is new will maintain direct competition together with past endeavor (also positioned in Nigeria). Nevertheless, the Nigerian entrepreneur вЂ” who built their very early technology credentials at e-commerce startups DealDey and Konga вЂ” claims Autochek is really a brand new model.
вЂњItвЂ™s different into the kind of technology weвЂ™re building and so itвЂ™s asset light. We donвЂ™t have inventory. We donвЂ™t purchase automobiles. We donвЂ™t transact any that is[physical. We donвЂ™t own any examination areas. I donвЂ™t own any dealerships,вЂќ Ikpe told TechCrunch for a call from Lagos.
AutochekвЂ™s model, in accordance with its CEO, is geared towards producing the electronic infrastructure for a http://www.cashlandloans.net/installment-loans-nv new system to higher coordinate product product product product sales, servicing, and car documents associated with vehicle market in Nigeria and wider Africa.
Autochek CEO Etop Ikpe, Image Credit: Autochek
Ikpe characterizes that market as nevertheless mainly casual and fragmented. вЂњWeвЂ™re essentially centered on technology approaches to build the rails of [AfricaвЂ™s] automotive sector to operate on. WeвЂ™re concentrating on three fundamentals associated with the market: deals and trading, upkeep, and financing,вЂќ he said.
AutochekвЂ™s platform вЂ” managed by a designer group in Lagos and Nairobi вЂ” is a system for customers and companies to get vehicles, offer cars, solution automobiles, and finance automobiles product sales.
The startup launched with 10 bank partnerships in Nigeria and two in Ghana, according to Ikpe on the financing side. Producing more funding choices is both an opportunity that is big the startup and customers, he explained. вЂњThe used automobile market in Africa is a $45 billion per year market which have just a 5% funding penetration rateвЂ¦so upside that is thereвЂ™s huge development.вЂќ
Image Credit: Autochek
Across its core item offerings, Autochek has generated a system of lovers and requirements. The business yields profits through charges charged on customer deals and commissions compensated by dealers and solution stores in the platform. Customers can subscribe and use the Autochek application at no cost.
From the unexpected departure from their past startup, Cars45, вЂњI left because i needed to create another thing,вЂќ explained Ikpe. ThereвЂ™s been lots of speculation in regional tech press as as to what occurred, including reports of forced exits by investors. Ikpe declined to find yourself in the information except to express, вЂњIвЂ™ve resigned. IвЂ™ve managed to move on and IвЂ™m dedicated to doing just exactly just just what IвЂ™m doing at this time.вЂќ
Along with its operations in Nigeria вЂ” AfricaвЂ™s most populous country, largest economy and top VC destination вЂ” Autochek intends to utilize its seed-financing to grow solutions and geographical range. The startup will include linked automobile associated solutions, such as for instance insurance coverage and blue guide prices items. Autochek can also be eying feasible entry in brand brand brand new nations such as for example Ivory Coast, Senegal, Southern Africa, Kenya, Egypt and Algeria. More M&A could be in play also. вЂњAcquisitions will probably be a core element of our expansion strategy,вЂќ said Ikpe.
TLcom Capital Partner Andreata Muforo confirmed the fundвЂ™s co-lead in the $3.4 million seed round. Talking with TechCrunch for a call from Nairobi, she named AutochekвЂ™s asset light model, IkpeвЂ™s repeat founder status, additionally the fundвЂ™s view of car product product sales and solution being a market that is underserved Africa as reasons behind supporting the endeavor. Golden Palm Investments, Lateral Capital, MSA Capital, and Kepple Africa Ventures additionally joined up with the investment round.
The majority of VC financing across AfricaвЂ™s top tech hubs вЂ” such as Nigeria, Kenya and South Africa вЂ” mobility related startups operating on the continent have attracted notable support while fintech gains. Drone delivery endeavor Zipline and trucking logistics business Kobo360 have both received backing from Goldman Sachs. FlexClub, a South African startup that matches investors and motorists to vehicles for ride-hailing services, utilized a $1.3 million round to enhance to Mexico together with Uber.