Nigerian automotive tech company AutoCheck is today announcing the acquisition of Cheki Kenya and Uganda from Ringier One Africa Media (ROAM)..
According to a statement, Autochek Will finalize the deal in the coming weeks. With the acquisition, AutoCheck completes its expansion into East Africa and follows the first acquisition made nearly a year ago when it acquired both Nigeria and Ghana businesses from Cheki.
In 2010, Cheeki launched in Nigeria as an online car classified for dealers, importers and private sellers. Startup headquartered in Lagos expands operations to Kenya, Ghana, Tanzania, Uganda, Zambia and Zimbabwe.
Cheeky was acquired by ROAM in 2017 and joins its network of online marketplaces and classifieds lists such as Joberman.
Per ROAM’s website, Cheki still has operations in Tanzania, Zambia and Zimbabwe. However, these markets are pretty passive so it’s safe to say that Autochek is Completely acquired all of The main operations of the Cheki.
Cheki Kenya is an exciting market for both sides. Assistant has 700,000 users and lists over 12,000 vehicles monthly. It also claims to grow 80% year-on-year over the past two years, making it a valuable asset to AutoCheck’s plans for regional expansion.
“Cheki Kenya has always been like the crown jewel”,” AutoCheck CEO eTop Ikepay told . “At the time, when we completed the acquisition of Nigeria and Ghana, it was not a conscious effort to do so, but it is great that it happened.“
credit penetration According to Vehicle financing is higher in Kenya than in Nigeria and Ghana. The East African country at 5% has a 27.5% penetration compared to the entire West African market. Hence, this explains why Autocheck is optimistic about the East African market. Prior to the acquisition, the one-year-old company ran a stealth pilot with some banks in Kenya – a similar strategy used in Ghana and Nigeria – to provide financing to car owners.. So, the acquisition strengthens the company’s position in the market, says Ikpe.
The sale of Cheeky’s operations in all of its major markets, which took place within a year, may have led some to ask whether the four entities underperformed and forced the classifieds giant to quickly find a suitable buyer. did.
But CEO Ikepay denied any claims of distress sales when asked. He said the acquisition happened in quick succession as both sides understood that the classifieds model (powered by Cheeky) needed to make way for a more modern transaction model (employed by AutoCheck and major automotive players in Africa).. Therefore, ROAM Africa saw this as a necessary transition for the Cheki.
Building on Ikpe’s previous relationship with Ringier (a branch of ROAM prior to the merger), where he ran Dealday, a classifieds deals company Ringier finally It wasn’t a difficult decision to sell the company to Autochek, Ikpe tells ..
“I feel it’s for them Really Long term strategy and they believe in our business model. And very much hope we can do something in future. He was Too Really About finding the perfect home for the business and their employees.”
In a statement, ROAM CEO Clemens Weitz said, “Worldwide, we see a new evolution of digital automotive platforms that require deep expertise.. Specially in Africa, we believe that autocheck is the only player with the best team and expertise In right terms Create a game-changing consumer experience. For ROAM Africa, this deal is much more than a very good transaction: it focuses even more on our strategic playbook for our other businesses. ”
AutoCheck’s expansion into East Africa comes at a time when automotive tech companies such as Moove, Planet42 and FlexClub are attracting investor attention as the need for flexible vehicle financing grows across the continent..
South Africa is arguably the most important car financing market on the continent. Other Automotive Companies There is some form of market presence and for AutoCheck, there are plans to expand there as well, and It is evident Why.
South Africa is the crme de la crme market and has the highest car financing penetration on the continent. Yet despite the seeming competition, Ikpe believes that opportunities exist for the company to provide market-tailored services that are different than other companies..
“The beauty of our platform is that we can be diverse; for example, we can have a retail or B2B approach. We have many dynamic ways of working. So I feel It is natural that our goal In general be in every field. We have made our inroads in the East and West, and we will continue to work as we want to be in North and South Africa,” he said.
AutoCheck says a funding round is underway to work on this front and could close before the end of the year.