Autochek has reached an agreement with Ringier One Africa Media (ROAM) Africa to acquire the Cheki Kenya and Cheki Uganda automotive marketplaces in order to further expand in the African market.
According to the automotive tech company, which is facilitating car financing across Africa, the deal will be completed within weeks and the activities of Cheki Kenya and Uganda will be integrated into the broader Autochek operations.
The move takes place just one year after the successful takeover of Cheki Nigeria and Ghana by Autochek as part of the market launch in West Africa.
Keep in mind that Autochek was founded in 2020 and was backed by well-known investors such as TLcom Capital and 4DX Ventures. With a presence in Nigeria and Ghana, the company’s 360-degree automotive solution also offers a strong network of after-sales services that maintain and facilitate the vehicle ownership experience across Africa.
The acquisition of East Africa’s leading online car marketplace marks the next step for Autochek to expand its presence in the region and continue its mission of providing seamless access to car finance across the continent. Building on Cheki’s 10 years of experience, Autochek will introduce additional technology solutions that integrate the auto ecosystem and increase market adoption for auto loan finance. As part of the agreement, ROAM Africa will transfer ownership and operational control to Autochek.
Commenting on the acquisition, Etop Ikpe, Founder and CEO of Autochek said: “The acquisition of Cheki Kenya and Uganda is an important milestone for us and we look forward to working with ROAM Africa again and building on their successes over the years. ROAM Africa has an unmatched track record in operating and scaling some of the most innovative classified marketplaces in sub-Saharan Africa and we look forward to capitalizing on this solid foundation of business. “
“Autochek’s mandate is to make it easier for African consumers to access higher quality, more affordable vehicles by providing access to finance while reducing the auto loan process for financial institutions. We are long time admirers and employees of the Cheki brand; With today’s news, we want to bring even more confidence and transparency to the East African automotive sector by leveraging the unique networks we are now merging. “
Cheki Kenya was founded in 2010 and has built a network of hundreds of dealers, more than 12,000 vehicles listed per month and 700,000 monthly unique users on its platform, with a growth of 80% over the previous two years.
Clemens Weitz, CEO of ROAM Africa, says: “We are seeing a new development in digital automotive platforms worldwide that requires deep specialization. In Africa in particular, we believe Autochek is the only player with the best team and expertise to create a truly groundbreaking consumer experience. Our Cheki team has built a unique, market leading brand and truly remarkable business. Above all, I would like to thank everyone on the team who contributed to this success. Now we’re excited to see this taken to the next level. While this is good news for everyone directly involved, the ultimate benefactor will be African car buyers and sellers. “
“For ROAM Africa, this deal is more than a very good transaction: It unleashes an even stronger focus on the strategic playbook for our core businesses. We have a clear strategy to further strengthen our leading marketplaces and to invest in innovative product solutions. The chance is now greater than ever as the pandemic has enormously accelerated digitization across the continent. In the past two years, our businesses have seen unprecedented growth. Therefore, our commitment to connecting Africans with opportunity remains strong. “
With a loan penetration in Kenya of 27.5 percent, well above the West African market, which is 5 percent, the growing East African market is positioned as a major center for auto finance, and Autochek is now strategically positioned to become a pan-African Player.