Nigerian automotive tech company Autochek acquires Cheki Kenya and Uganda from Ringier One Africa Media (ROAM) for an undisclosed amount. With the acquisition, Autochek completes its expansion into East Africa and follows the first acquisition made almost a year ago when it acquired both Nigeria and Ghana businesses from Cheki. In 2010, Cheki launched as an online car classified for dealers, importers, and private sellers in Kenya. The startup, headquartered in Nairobi, expanded operations to Nigeria, Ghana, Tanzania, Uganda, Zambia, and Zimbabwe. Cheki got acquired by ROAM in 2017 and joined a list of online marketplaces and classifieds in its network like Jobberman. Cheki still has operations in Tanzania, Zambia, and Zimbabwe. However, these markets are quite inactive, so it is safe to say Autochek has fully acquired all of Cheki’s main operations.
Cheki Kenya is an exciting market for both parties. The subsidiary has 700,000 users and lists over 12,000 vehicles monthly. It also claims to have grown 80% year-on-year in the last two years, making it a valuable asset for Autochek’s plan for regional expansion. Credit penetration in terms of vehicle financing is higher in Kenya than in Nigeria and Ghana. The East African country has a 27.5% penetration compared to the whole West African market at 5%. Therefore, it explains why Autochek is optimistic about the East African market. Before making the acquisition, the one-year-old company ran a stealthy pilot with some banks in Kenya — a similar strategy used in Ghana and Nigeria — to provide car owners with financing. Autochek’s expansion to East Africa is coming at a time when automotive tech companies like Moove, Planet42, and FlexClub are receiving attention from investors as the need for flexible vehicle financing keeps growing across the continent. The most important car financing market on the continent is arguably South Africa. Other automotive companies have some form of presence in the market and for Autochek, the plan is to expand there too.