Autochek, a Nigerian automotive technology company, has acquired a majority stake in AutoTager, an Egyptian automotive technology company, to establish its presence in Egypt. This is the second acquisition Autochek has made in North Africa, after acquiring Moroccan KIFAL Autos last year. It is also Autochek’s sixth acquisition in two years, expanding its footprint to East, West, and North Africa.
The company now has active operations in nine countries, with a partner-led footprint of more than 2,000 dealers and workshop locations. AutoTager, a venture-backed startup, provides Egyptians with access to vetted vehicles and financing options while connecting dealers with buyers and providing technology solutions to improve their operations.
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.”
AutoTager’s CEO, Amr Rezk, will still lead the company. “We are thrilled to partner with Autochek to pursue several sizable and unique opportunities in the automotive space. Autochek has deep automotive expertise and brings a proven playbook and several all-weather strategies that have been tested and validated in multiple complex high-growth markets,” Rezk said.” The company’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. We have very exciting plans and are 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.”