Autochek secures seed funding to deepen West Africa footprint

AutoCheck, the automotive technology company, has recently secured $13.1 million in seed funding, just under a year after completing a $3.4 million pre-seed raise. The company is set to utilize this capital to enhance its auto loan processing platform and deepen its presence in West Africa. Etop Ikpe, the CEO of AutoCheck, discussed the company's expansion plans and the opportunities they are seeing with CNBC Africa. Etop Ikpe expressed his excitement and gratitude for the ongoing support and interest in their company over the past 11 months. He emphasized that a significant portion of the funding would be allocated to scaling up their technology to meet the growing demand from both financial partners and consumers. This scaling up process includes accelerating technology development and exploring partnership opportunities with banking institutions for expansion into West and East Africa. AutoCheck operates as an automotive technology platform, focusing on facilitating car sales and auto loans. Their unique business model revolves around a three-sided marketplace involving dealerships, consumers, and financial institutions. Dealerships utilize their software to list cars, consumers browse and apply for loans on the platform, and financial partners process digital loan applications in real-time. The company's marketplace-driven model streamlines the car buying and financing process for consumers, offering multiple loan options from various banks within a short timeframe. AutoCheck also provides support to financial institutions throughout the loan lifecycle, including asset tracking and maintenance, all managed digitally to enhance efficiency. Despite economic challenges faced by consumers due to the pandemic, there has been a global increase in the demand for cars. Factors such as chip shortages impacting supply chains and the shift towards personal mobility following the pandemic have contributed to this rise in demand. In regions like Nigeria, where the cost of imported goods has surged, the demand for car financing has intensified as consumers seek affordable loan options to access vehicles. Etop Ikpe highlighted that the surge in car demand is a trend seen worldwide, not limited to Africa or Nigeria, emphasizing the importance of providing quick and accessible loan solutions to meet consumer needs. AutoCheck's innovative approach to integrating technology and financing in the automotive industry has positioned them well to cater to the evolving demands of the market. As AutoCheck gears up to expand further into the region and enhance their technological capabilities, the company remains committed to driving sales and facilitating car ownership for all stakeholders in the automotive sector.