Mecho Autotech Raises $2.15m Seed Funding
The Nigerian vehicle repair and maintenance startup offers repair and maintenance services to businesses and consumers through in-house and third-party service capacity which has passed rigorous assessments.
Mecho Autotech has raised a US$2.15 million seed funding round to expand its capacities and acquire more customers.
The company has so far onboarded over 7,000 third-party mechanics to its platform. Last year it was a participant in the S21 batch of the Y Combinator accelerator, and raised funding from Ingressive Capital.
Further funding has now been secured, to the tune of US$2.15 million, with the seed round featuring participation from Future Africa, Hoaq Capital, Cathexis Ventures, V8 Capital, Silver Squid and Tekedia Capital.
Mecho Autotech will use the capital to expand its multi-channel service capacity, engineering team, and marketing budget for B2C acquisition.
The startup said it has so far built three Mecho Shops across Lagos, and will continue to expand this capacity. Its B2B customers include some of Nigeria’s largest corporate fleets including Uber partner Moove, Tolaram Group, and UAC Group, while the startup aims to grow in B2C via a subscription service model and individual service requests.
Moreover, Mecho is developing a spare parts value chain which has already served over 100 third-party mechanics and several large ticket inventory purchases for B2B customers.
Olusegun Owoade, Mecho Autotech Co-founder said: “When you consider the state of Nigeria’s used cars and our roads, car maintenance isn’t optional. We want to automate high-quality vehicle repair and maintenance for Nigerians by making it easy, convenient, and affordable. We aspire to build a maintenance culture in Nigeria and beyond to keep roads and people safe.”
Iyinoluwa Aboyeji, Future Africa’s founder and general partner, said: “With over 12 million cars on our roads and more on the way, leveraging technology to bring order to vehicle maintenance and repair is overdue. We are delighted to work with the Mecho Autotech team as they brilliantly execute on building out the vehicle repair value chain across Africa and create new and decent highly skilled auto repair jobs.”