In September 2020, as the coronavirus pandemic wreaked havoc globally and over 2000 deaths were reported in Nigeria, the local startup ecosystem faced a new drama. Etop Ikpe, CEO of Cars45 — a prominent digital automotive platform — abruptly announced his resignation. Media reports speculated that Ikpe’s exit, along with the voluntary departure of 11 senior employees, stemmed from disagreements over equity arrangements and fallout from a buyout. The stage was set for what would become a growing pattern in Nigeria’s nascent auto-tech scene.
Ikpe had co-founded Cars45 in 2016 with Iyamu Mohammed, Sujay Tyle, and Peter Lindholm. His leadership saw the company secure $5 million in Series A funding from investors including Frontier Car Group, Balderton Capital, EchoVC, and TPG Growth. Cars45 expanded its operations to Ghana and Kenya in 2019 and had ambitious plans for 2020. However, Ikpe departed just as those plans were gaining traction.
Barely a month later, Ikpe launched Autochek, another auto-tech platform, where he serves as CEO. Autochek has since raised $16.5 million across two funding rounds, with support from notable investors such as TLcom Capital, 4DX Ventures, and Mobility 54 Investment SAS. The company has made strategic acquisitions, including ChekiNigeria and CoinAfrique, positioning itself as a key player in Africa’s $45 billion used-car market.
Ikpe’s smooth transition from Cars45 to Autochek reflects a larger, yet less-discussed, issue within Nigeria’s auto-tech industry: the frequent exodus of co-founders. This phenomenon raises questions about sustainability, governance, and the dynamics within these ventures.
A Recurring Trend
Mecho Autotech, a Nigerian startup focused on automotive spare parts and maintenance services, further extends this pattern. Founded by Olusegun Owoade and Ayoola Akinkunmi, the startup raised $2.4 million in pre-Series A funding last year, after a seed round of $2.1 million in 2022. Yet, Akinkunmi left the company before the 2023 announcement to establish a competing venture, 29Workshop Autotech. His new startup aims to build Africa’s largest network of mobile mechanics, offering on-demand services through a mobile app. While Akinkunmi has refrained from publicly explaining his departure, industry observers suggest it could stem from strategic concessions or potential conflicts.
Fixit45, another rising auto-tech company, raised $1.9 million in pre-seed funding in 2023. Co-founded by India’s Pankaj Bohhra and Nigerians Justus Obaoye and Abdulazeez Ogunjobi, the startup quickly established a network of over 300 workshops across nine Nigerian cities and collaborated with over 1,200 spare parts distributors and manufacturers. However, within a year of its funding announcement, Obaoye and Ogunjobi had all exited the company to co-found Billboxx, a B2B SaaS platform.
Billboxx recently secured a $125,000 investment from the Norrsken Accelerator, granting the co-founders access to mentorship and a global investor network. As with Akinkunmi, no formal reasons were provided for their departure, but speculation hints at unresolved tensions within Fixit45 or their conscription as co-founders rather than original architects of the venture.
The Underlying Issues
Co-founder exits are not unique to Nigeria’s auto-tech sector, but the frequency and timing of these departures are troubling. Startups rely heavily on the synergy of their founding teams to confront challenges they are attempting to disrupt, especially in high-stakes industries like auto-tech. The departure of a co-founder, particularly during or shortly after a funding milestone, often signals deeper structural or interpersonal issues.
Etop Ikpe’s own experience highlights the complexities of these dynamics. Responding to rumours about his departure from Cars45, he firmly denied any rancour. “The rumours are absolutely untrue. I left Cars45 on good terms and maintain a positive relationship with the team at Frontier Car Group and OLX,” he stated, at the time.
While Ikpe’s explanation suggests an amicable split, the broader trend in Nigeria’s auto-tech sector raises questions about how these companies manage leadership transitions, equity distribution, and internal governance.
The Bottom Line
The rapid growth of Nigeria’s auto-tech industry, driven by Africa’s $40 billion used-car market and a $10 billion annual national spend on imported spare parts, presents immense opportunities. Companies like Autochek, Mecho Autotech, and Fixit45 have introduced innovative solutions, from financing and after-sales services to spare parts logistics and mobile repair networks. However, sustaining this momentum will require addressing the challenges of co-founder retention.
Building stronger governance structures, fostering transparent communication among founders, and aligning long-term goals are crucial steps to mitigate the disruptions caused by high-profile exits. For Nigeria’s auto-tech sector to thrive, its leaders must navigate these internal challenges with the same innovation and resilience they bring to solving the market’s problems.
As the industry continues to evolve, one thing is clear: co-founder dynamics will remain a critical factor in determining its trajectory. Whether the sector can adapt and thrive amid these challenges will shape its future and influence its role in Africa’s broader tech ecosystem.