Nigerian automotive technology company, Autochek, has announced the acquisition of a majority stake in Egypt’s AutoTager, a company operating in the same field.
The acquisition is part of plans to expand the company’s presence into Egypt and subsequently North Africa.
This is the second acquisition Autochek has made in North Africa after acquiring Moroccan KIFAL Autos last year. It is also Autochek’s third in less than two years, cementing its position as the leading Pan-African automotive technology company.
Commenting on the acquisition, Autochek’s CFO and co-founder, Olajide Adamolekun said: “There are many parallels between Autochek and AutoTager, and we are looking forward to building on these parallels to deliver more growth and success in the months and years to come.”
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On his part, AutoTager’s CEO and Founder, Amr Rezk, explained that Autochek’s “…track record of concurrently operating various business models in the automotive space is stellar and provides us with a wide menu of options and cutting-edge tools to offer AutoTager’s customers a truly unique proposition.”
He shared his excitement about the future plans following the acquisition and is “…confident that the global OEM and financing partnerships that Autochek has secured will also provide us with differentiated access allowing us to lead in our space while targeting high-quality top decile returns.’
In a Central Bank of Egypt report, The North African nation’s net foreign direct investment (FDI) inflows more than doubled to $3.6 billion in the first quarter (1Q) of the current fiscal year 2022/2023 (July-September 2022). This growth is an increase from $1.7 billion at the same time last year.
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Egypt’s Place In Africa’s Automobile Industry
Egypt is the third-largest economy in Africa and the second-largest passenger car market, making it a strategic market for a car-financing service. In 2021, over 215,000 cars were sold in Egypt, creating thousands of jobs. The country’s strategic position and large population have created a large demand for cars and auto financing solutions.
Autochek hopes to leverage its partnership with several banks to provide Egyptians with the infrastructure to make car ownership more accessible and affordable. Speaking on the acquisition, Olajide Adamolekun, Autochek’s CFO and co-founder, said, “There are many parallels between Autochek and AutoTager, and we are looking forward to building on these parallels to deliver more growth and success in the months and years to come.”
About Autochek
Autochek is an automotive technology development company established with the aim of making car ownership more accessible and affordable in Africa. The Nigerian-owned company has active operations in 9 countries across East, West, and North Africa, with a partner-led retail footprint in over 1,500 dealers and workshop locations.
The company has more than 70 banking partners and is improving Africa’s automotive finance value proposition by connecting all relevant stakeholders to enable easier access to more financing options as a catalyst for growth in Africa’s automotive industry.
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About AutoTager
Autotager is a vehicle-focused digital automotive trading and financing company, set up to make car purchases as seamless as possible by removing bottlenecks in the process of buying a car to ensure that the car trade is easy and transparent.
The Egyptian company includes new and used cars selected from authorised dealers and provides different financing and insurance programs to enable customers choose the program that best suits their needs.