Autochek, a startup operating out of Nigeria, is focused on establishing an online platform for car sales and maintenance services throughout Africa. The company recently secured $3.4 million in a pre-seed funding round, led jointly by TLcom Capital and 4DX ventures, to further this objective.

This investment follows Autochek’s September purchase of Cheki, a digital marketplace for car sales operating in Nigeria and Ghana. It also occurs shortly after Etop Ikpe, Autochek’s Chief Executive Officer, stepped down from his role at Cars45 – the company he helped establish in 2016, which is currently owned by the Amsterdam-based OLX Group.

These developments represent a significant period of activity for Ikpe. His new company is anticipated to compete directly with his previous one, both of which are based in Nigeria. However, the Nigerian entrepreneur – who initially gained experience in the technology sector at e-commerce companies DealDey and Konga – asserts that Autochek represents a different approach.

“Our approach differs in the technology we are developing and its asset-light nature. We do not hold any inventory, purchase vehicles, or handle any [physical] car transactions. We do not possess or operate any inspection facilities or dealerships,” Ikpe explained to TechCrunch during a conversation from Lagos.

According to its CEO, Autochek’s business model centers on building the digital infrastructure necessary to streamline sales, maintenance, and vehicle record management within the Nigerian and wider African automotive market.

Autochek’s platform – developed by teams in Lagos and Nairobi – connects consumers and businesses, enabling them to buy, sell, service, and finance vehicle purchases.

Ikpe indicated that the startup launched with partnerships with 10 banks in Nigeria and 2 in Ghana to facilitate financing options. He emphasized that expanding access to financing is a substantial opportunity for both the company and consumers. “The African used car market is valued at $45 billion annually, yet only 5% of transactions are financed, indicating significant potential for growth.”

Regarding his departure from Cars45, “I left to pursue the development of a new venture,” Ikpe clarified. Local technology publications have offered various explanations, including reports of investor-driven exits. Ikpe declined to elaborate, stating, “I have resigned and am now fully dedicated to my current endeavors.”

In addition to its operations in Nigeria – Africa’s most populous country, largest economy, and leading destination for venture capital – Autochek intends to utilize the seed funding to broaden its services and geographic reach. The startup plans to incorporate related automotive services, such as insurance and vehicle valuation products. Autochek is also considering expansion into countries including Ivory Coast, Senegal, South Africa, Kenya, Egypt, and Algeria. Further mergers and acquisitions are also a possibility. “Acquisitions will be a central component of our expansion strategy,” Ikpe said.

Andreata Muforo, Partner at TLcom Capital, confirmed the fund’s co-leadership of the $3.4 million seed round. During a conversation with TechCrunch from Nairobi, she highlighted Autochek’s asset-light model, Ikpe’s experience as a repeat founder, and the fund’s assessment of the underserved auto sales and service market in Africa as key factors in their investment decision. Golden Palm Investments, Lateral Capital, MSA Capital, and Kepple Africa Ventures also participated in the funding round.

While fintech companies receive the largest share of venture capital funding in Africa’s major technology hubs – such as Nigeria, Kenya, and South Africa – mobility-focused startups on the continent have also attracted significant investment. Zipline, a drone delivery service, and Kobo360, a trucking logistics company, have both received funding from Goldman Sachs. In 2019, FlexClub, a South African startup connecting investors and drivers with vehicles for ride-hailing services, secured $1.3 million to expand into Mexico in partnership with Uber.