Nigerian automotive technology company Autochek has raised a US$3.4 million pre-seed funding round to help it grow its operations and develop its platform.
Autochek 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.
In September the newly-founded startup had acquired automotive marketplaces Cheki Nigeria and Cheki Ghana, previously part of ROAM Africa’s portfolio of leading online marketplaces, and Autocheck has continued to pursue an aggressive growth strategy by raising an investment round.
The US$3.4 million pre-seed round is co-led by TLcom Capital and 4DX Ventures, with inclusion from Golden Palm Investments, Lateral Capital, Kepple Africa Ventures, MSA Capital and a number of local angel and seed investors. Autochek will use the investment to grow its Nigeria and Ghana markets, and further, invest in technology and growing its teams.
“This early-stage investment allows us to get started with the work of developing technology products and services that will transform automotive trade on the continent, whereby we significantly improve transactions and aftercare support for car owners, dealers and other stakeholders across the African automotive industry,” said Etop Ikpe, founder and chief executive officer (CEO) of Autochek.
Through the acquisition of Cheki Nigeria and Cheki Ghana, Autochek already has more than 20,000 unique vehicles listed on its platform, and more than 12,000 dealers and private sellers, as well as a range of corporate partners and customers.
“Building on the solid work that the Cheki Nigeria and Ghana teams have done over the last 10 years, we are already dispersed across multiple locations and applying the technology built and developed by our Autochek auto-tech experts, we are well positioned to scale quickly, as demand for reliable and well priced cars on the continent grow. With this pre-seed round and our seasoned strategic investors on board, we are working to transform the automotive sector on the continent,” Ikpe said.
Andreata Muforo, partner at TLcom, said Autochek was radically improving customer experience and dealer economics in an industry that creates value and jobs across the continent.
“We are excited to be part of that journey. The founding team has a clear plan for what they want to achieve and we look forward to working with them as they execute on their vision,” she said.
Walter Baddoo, managing partner at 4DX Ventures, was also proud to partner with Autochek as the company embarks on its mission to transform Africa’s automotive industry.
“By providing access to a new range of products and services, the company will dramatically enhance the automotive transacting experience for dealers and the ownership experience for consumers across the continent. Autochek is helping to unlock massive opportunities in Africa’s auto sector and we are pleased to be supporting that mission,” he said.