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Autochek has received Sh1.5 billion ($13.1million) seed funding that will be used for expansion beyond the five countries it operates through financing vehicle ownership.
The seed funding was raised by Autochek’s lead investors – TLcom Capital and 4DX Ventures – and existing investors including Golden Palm Investments, Enza Capital and Lateral Capital.
Others are new participants, ASK Capital and Mobility 54 Investment SAS – the venture capital arm of Toyota Tsusho group company, CFAO Group.
The capital will be used for expansion across East Africa and West African region by boosting loans processed and car ownership.
“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,” said Etop Ikpe, founder and CEO of Autochek.
“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,”he added.
The start-up supported by mobile app and website has operations in five countries – Nigeria, Kenya, Ghana, Uganda and Cote d’Ivoire, its recent entry.
It also acquired Cheki Kenya and Cheki Uganda.
The new funding has been secured a year after Autochek’s Sh371.45 million ($3.4 million) pre-seed raised by the lead investors in November last year.
The financing saw the company’s processed loan applications for clients rise from 10 at the time to over 46,000 to date.
The recent funds will be used to establish its presence in the new entry market, Cote d’Ivoire and expand to other countries in East and West Africa.
Autochek will be leveraging Toyota Tsusho’s retail network across 54 African countries to further deepen its expansion as part of the investment by Mobility54.