Autochek, the Nigerian auto-tech startup, is stepping up its game by introducing a financial services division based in South Africa. This move aligns with Autochek's mission of making car ownership more affordable and accessible in Africa.
Autochek is all about using technology to reshape how Africans buy and sell cars. Their innovative approach aims to create a one-stop marketplace for everything car-related, from buying and financing to support and warranties.
Backed by a $13.1 million investment, Autochek has been on a fast track, growing through smart acquisitions. It started in September 2020 with the takeover of Cheki Nigeria and Cheki Ghana from ROAM Africa. Since then, it has expanded to Kenya, Uganda, Morocco, Egypt, and the Ivory Coast.
Last November, Autochek made a big announcement: the launch of Autochek Financial Services. This new arm will focus on providing diverse vehicle financing options for consumers and businesses across Africa.
Johan van der Merwe, CEO of Autochek Financial Services, highlighted a key challenge: despite the economic benefits, vehicle ownership in Africa remains low—only 44 vehicles per 1,000 people compared to a global average of 180. This is largely due to the gap between car prices and average income in Africa.
Autochek is determined to change this. In just over two years, they've teamed up with over 70 financial institutions and 2,000 dealerships, processing more than 100,000 car loan applications. They're using technology to streamline the loan process, making it easier for financial institutions to offer credit to consumers.
Van der Merwe stressed that the launch of Autochek Financial Services will supercharge their efforts to improve access to finance for Africans. Leveraging Autochek's extensive reach across North, East, and West Africa, this new division is driving the expansion of auto financing across the continent.
Autochek Financial Services benefits from a diverse income stream involving partnerships with dealerships, finance companies, insurance providers, vehicle service centers, and tracking companies. This approach allows them to offer comprehensive package deals, benefiting everyone involved.
A significant portion of Autochek's income now comes from interest earned on vehicles financed through their financial services arm. Despite its relative youth, this division's revenue and profit outlook is strong, thanks to careful growth management and strict criteria to ensure long-term sustainability.
Autochek's move into the financial sector underscores its commitment to transforming Africa's automotive landscape. By combining technology, collaboration, and innovation, they're on track to make vehicle ownership more attainable for all Africans, driving economic progress across the continent.
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