Autochek, a Nigeria-based automotive technology entity, has taken over Cheki Kenya and Uganda from ROAM (Ringier One Africa Media) for an anonymous sum.
According to a statement by Autochek, through the acquisition, the entity will expand its presence in East Africa. It follows its first acquisition of Ghana and Nigeria business arm of Cheki in 2020.
For the record, in 2010, Cheki introduced an online car classified for importers, dealers, and private sellers across Kenya. Based in Nairobi, the startup gradually expanded its operations to Ghana, Tanzania, Uganda, Zambia, Nigeria, and Zimbabwe.
In the year 2017, ROAM bought Cheki to add it to its list of e-market platforms and classifieds networks.
As mentioned on ROAM’s official website, Cheki continues to have operations in Zimbabwe, Tanzania, and Zambia. Although, these markets continue to be inactive hence, it may be conferred that Autochek has completely acquired the main business of Cheki.
At present, Cheki Kenya is a thriving marketplace for both parties. The subsidiary has nearly 70,000 users and lists more than 12,000 automobiles each month.
In addition to this, it has also showcased 80% growth in the last two years, making valuable assets for Autochek’s proposed plan for regional expansion.
It is worth noting that Autochek’s expansion to East Africa comes when automobile tech firms such as Planet42, Moove, and FlexClub are gaining attention from investors due to the rising need for flexible vehicle financing solutions across the African continent.
According to Etop Ikpe, CEO of Autochek, credit penetration with respect to vehicle financing is relatively higher in Kenya when compared to Ghana and Nigeria. The East African nation has a 27.5% penetration as opposed to the entire West African industry at 5%.
Prior to the purchase, Autochek carried out a pilot with certain banks in Kenya to offer vehicle owners with financing, strengthening the entity’s position in the market, Mr. Ikpe added.