Autochek, a Nigerian automotive technology startup, facilitating auto financing across Africa, has secured $13.1 million in seed funding. The new funding comes a month less a year after its $3.4 million pre-seed round, putting the total fund raised by the startup at $16.5 million.

The round was led by TLcom Capital and 4DX Ventures, with the 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).

Autocheck helps users to buy, sell and maintain their cars using their mobile app. As part of the company’s growth strategy, the newly raised fund will be used to expand its core auto loan processing platform and deepen its footprint in West Africa. The company has recently made an entry into Cote d’Ivoire, but hopes to expand its footprint across East Africa, following its recent acquisition of Cheki Kenya and Cheki Uganda, East Africa’s leading online auto marketplace. 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.

Founded in October 2020 and operational across East and West Africa in 5 countries – Nigeria, Kenya, Ghana, Uganda and Cote d’Ivoire; Autochek says it combines technology, underpinned by data analytics to deepen auto finance penetration across the continent. The company added that it has recorded rapid growth in just one year, having the number of processed loan applications rose from 10 to 46,000.

The success has been powered by its residual value algorithm, which enables in-house digital solutions such as Collateral Management, Dealer Management Systems and a proprietary CRM system for managing stakeholder operations within the ecosystem such as vehicle financing, inspection, valuation, and inventory management.

Autochek’s success has attracted partnership with 70 banks across the continent, including leading regional players such as Access Bank, Ecobank, UBA, Bank of Africa and NCBA Bank. Currently, the company says it has over 1000 dealers on the Autochek network actively using the loan processing solution, and over 15,000 certified and financeable vehicles on the Autochek marketplace across its markets.

Speaking on the next phase of Autochek’s rapid growth following its fundraise, Etop Ikpe, Founder and CEO of Autochek, said the support of banking partners has helped the company in tackling the challenges it has encountered along the way.

“We are extremely delighted with the progress we’ve made in a short amount of time. With this funding and the support of our strategic investors, the entire team at Autochek are dedicated to delivering exceptional service for customers and partners, as well as deploying our technology across Africa,” he said.

Andreata Muforo, Partner at TLcom, says “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.”

Despite being a $45bn industry, Africa’s used car market only has a 5% financing penetration rate, marking a major contrast to the rates of 98% and 99% in Europe and the USA respectively. Due to a lack of transparency from the automotive sector, there is no way for lenders to understand the present and residual value of vehicles, creating a significant reluctance to issue loans. However, with Autochek’s established links with car dealerships and 150-point inspection and valuation reports, the company can access vital information on the quality and condition of a range of vehicles, providing lenders with the much-needed trust and transparency to make informed decisions. Based on its algorithms, Autochek is also able to develop a credit profile on behalf of customers and effectively reduce a loan application process from 40-45 days to 48 hours.

Walter Baddoo, Managing Partner at 4DX Ventures, says Autocheck is poised to build on its existing success to change Africa’s auto industry for good.

“Autochek is revolutionizing the auto industry in Africa by offering the convenience and selection advantage of an auto e-commerce platform together with the added flexibility of financing. We have enjoyed working with the team so far, and they have demonstrated the talent, ambition, and domain expertise needed to build a complete end-to-end car ownership experience for customers. We are excited to partner with the team as they pursue the next phase of their growth,” he said.

Apparently, discerning minds on the African continent are currently awaiting the era when the black race in its entirety would emerge greener in all ramifications.

“I would feel more optimistic about a bright future for man if he spent less time proving that he can outwit Nature and more time tasting her sweetness and respecting her seniority.”

The above were the words of Mr. E. B. White, the late renowned American writer who was the author of several highly popular books, remained consistent till his death on October 1, 1985.

The future is the time that is yet to come; the period that is to be or come hereafter. It is something that will exist or happen in time to come. It can also be described as a condition, especially of success or failure, that would come tomorrow. In other words, the future is unknown, but can be predicted.

On the other hand, something that eventually becomes greener could be regarded as being in better shape; hence, it is more adored as compared to its previous condition. This is why a better or more promising situation is generally referred to as ‘greener pasture’.

This piece is ostensibly predicting that the future of Africa will someday be greener. It’s noteworthy that to predict the future of anybody, you must realize or acknowledge their potential. This is a factor that shouldn’t be taken for granted.

Africa as a continent has thus far remained resilient to various shocks and benefited from strong demand for commodities, increased investment flows and closer links to global value chains.

While the world’s numerous crises have negatively affected Africa’s growth performance – mainly because of weaker global demand and declines in capital flows coupled with promises of aid that never materialized – her outlook remains bright.

The continent is obviously blessed with abundant resources, both in materials and humans. It’s worth acknowledging that each country embodied in Africa could boldly boast of remarkable potentials. Above all, her climatic condition has been adjudged as the best across the globe.

Despite these endowments, survey indicates that nearly 78% of the population of Sub-Saharan Africa lives in poverty with about 52% living below the United Nations poverty line of $1.25 per day as proclaimed in 2010.

It would interest, or perhaps shock you, to know that only about a third of Africans has access to sanitation, and another third have no access at all to clean water. Under such conditions, fighting diseases remains a serious battle.

It’s no longer news that currently, a countless number of young people on the African continent are jobless, and have no hope of clinching a meaningful job. This very phenomenon could be felt in Nigeria, the acclaimed giant of Africa, among others. And as time progresses, the education and health sectors on the continent continue to wear a lone face.

However, the future is greener in Africa if the need is seen as priority. The leadership of the continent needs to transform her economic structures, so the citizenry can benefit from stronger, more inclusive growth.

The proposed structural transformation can be actualized by revisiting the extant policies and embracing the modern method of approaching things as occasioned by technology.

The continent has a tremendous comparative advantage in natural resources, whether in energy, mineral or agriculture, which could be the basis for action. This fact must therefore be taken very seriously.

First, we as a people must adopt policies designed to improve infrastructure, logistics and skills, as well as promote private sector participation. We ought to equally strengthen the natural resource sector via greater investments in value-added activities and know-how, thereby generating more revenue for the government and more job opportunities for Africans.

We must as well put in place a transparent and fair tax system, and also promote competition among the young individuals by creating an enabling environment as well as deeply combat public and private corruption.

In the same vein, the leaders must be prepared to initiate various programmes to raise agricultural productivity and build linkages to and for the extractive industries.

Time has really come for Africa to make better use of her resources and achieve more inclusive growth. With the right policies and strategic approach, the anticipated social and economic progress can be fully realized.

The followers ought to equally be very conscious of happenings in the polity towards ensuring their collective role is well played at all times. Hence, they shouldn’t sit on the fence.

Technology has proven to possess the key to several needed developments. In view of this assertion, the concerned authorities in various sectors must not shy away from inculcating tech-driven measures toward witnessing a total turnaround.

Most importantly, like in the words of E. B. White as cited in the beginning, we must spend less time thinking we can outwit Nature, but more time respecting her seniority, because she is indeed very mighty and powerful. We must note that we can’t cheat Nature. This would enable us to live a life of sincerity and trustworthiness at all cost.

That’s the only way we can employ the needed political will, on the part of the leaders; and the only way the teeming followers can render the required support and/or criticism if the need arises.

At this juncture, I want to leave us with the words of Peter Drucker, “The best way to predict the future is to create it.”

So, as the teeming Africans anxiously but patiently await the greener future, they are enjoined to graciously key into the needful in respect of their respective roles toward collective uplift.

This, no doubt, is the only way we can live to see the aforementioned dream come into reality.