• Saturday, April 20, 2024
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Autochek acquires majority stake in Egypt’s auto-tech company

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Autochek, an African automotive technology company, has announced the acquisition of a majority stake in AutoTager, an Egyptian automotive technology company that makes it easier to find and buy cars.

According to Autochek, the partnership aims to deepen its presence in North Africa and support the company’s growth.

The Egypt-based company founded in 2021, according to Autochek is a venture-backed startup enabling easier access to vetted vehicles and financing for consumers, connecting dealers with serious buyers and technology solutions to improve their operations.

Amr Rezk, CEO and founder of AutoTager commenting on the acquisition said they 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. 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.

Read also: Four hurdles facing African fintechs’ $30bn growth projection

“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,” Rezk said.

However, the acquisition represents Autochek’s entry into Egypt, which is Africa’s second-largest economy and the continent’s second-largest automotive market.

Olajide Adamolekun, group chief financial officer and co-founder of Autochek said, “Amr’s background and track record is as impressive as it gets and I am delighted to have him on board. His experience will be invaluable as we enter the Egyptian market and continue on our mission to improve the automotive finance value proposition on the continent and catalyse more growth across the automotive ecosystem. 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.”

The company disclosed that Rezk has founded and co-founded multiple successful companies, including Fundseer, a leading private equity GP/LP coordination platform, and has deep experience operating in and investing in various geographies across Africa and the Middle East, with a track record of building and sustaining high growth enterprises.

The partners said he has also worked with several large institutions including Goldman Sachs, EFG-Hermes, and the Qatar Investment Authority where he led the Private Equity and Venture Capital Funds Investments Team.

Egypt’s strategic geographical position, skilled workforce, large domestic market, and the successful reforms undertaken by the country’s government in recent years, according to the partners have enabled dynamic growth and made it one of the largest recipients of Foreign Direct Investment (FDI) in Africa over the past decade.

Meanwhile, Autochek said the acquisition represents the third for Autochek in less than a year and the sixth in under two years, as it now has active operations in nine countries across East, West and North Africa, with a partner-led footprint of more than 2,000 dealers and workshop locations.