Photo Courtesy Autochek
News has spread about the purchase of Nigerian automotive technology company Autochek, which Cheki Kenya and Uganda acquired from Ringier One Africa Media (ROAM), but the amount of the transaction is unknown. In a statement, Autochek said they had closed the deal. This means that the company has increased its expansion throughout East Africa, having also acquired Cheki's business in the countries of Nigeria and Ghana. Previously, in 2010, Cheki was a site where cars were offered, sold and bought online. Interested parties were importers and dealers in Kenya.
The company was headquartered in Nairobi, but later expanded its business to other countries such as Uganda, Ghana, Nigeria, Uganda, Tanzania, Ghana, Zambia and Zimbabwe. Cheki Kenya has offered a better experience for the automotive market. The company claims to have over 700,000 users on its website and at least about 10,000 vehicles are sold monthly through its company. This can be reflected in its financial accounts, as the company claims to have grown by 80% in the last two years, this has been an attraction for Autochek and its expansion plan in Africa.
Autochek has high expectations for the Kenyan market. Prior to its acquisition, the company, which is one year old, conducted a stealth pilot with local Kenyan banks - the strategy used in Ghana and Nigeria - to offer financing to vehicle owners. The sale of Cheki, which was completed in a matter of a year, may raise questions about whether the company got it right or wrong, as it had a good positioning with its classified ads that helped buyers find the right car.
Autochek has expanded throughout East Africa at a time when other similar companies such as Planet42, Moove, and FlexClub have been attracting the attention of investors because they offer very flexible financing to buy a car. Another country with strong buying power is South Africa, and Autochek is setting its sights on expanding into that market as well.
