Mecho Autotech, a Nigerian startup that provides quality automotive spare parts, vehicle repairs and maintenance services has raised $2.4 million.
Mecho Autotech, a Nigerian startup that provides quality automotive spare parts, vehicle repairs and maintenance services, has raised $2.4 million in a pre-Series A investment round. Global Brain Corporation, Ventures Platform, and Uncovered Fund backed the round.
Per Mecho Autotech, the fund will be used to launch a B2B spare parts distribution platform. In partnership with local banks, the startup will offer up to ₦10 million ($13,428) in financing to automotive supply chain players. They aim to create a demand-driven ecosystem for Nigeria’s $8 billion automotive after-sales market through tailored software solutions.
In February 2022 Mecho Autotech secured $2.15 million in seed funding to expand its vehicle maintenance services, with the initial goal of providing vehicle maintenance and repair services. However, the startup identified the shortage of spare parts in the country. Its pre-Series A funding of $2.4 million positions the startup to target Nigeria’s annual $10 billion spending on imported vehicle spare parts.
Speaking on the investment, Hiroto Sorita, Global Brain Corporation Director, said, “We see a significant opportunity in the growth of the automotive aftersales market in Nigeria. Mecho is led by a strong entrepreneur and team with vast industry experience. Global Brain will support Mecho on parts procurement from Asian suppliers and business development for the new services to penetrate this fragmented market.”
Leveraging its partnerships with aftermarket spare parts manufacturers in Asia, Mecho’s online market space will allow spare parts vendors and workshop owners to buy affordable high-quality spare parts. By the end of Q3, Mecho Autotech plans to launch an app for corporate fleet owners to discover workshops, access maintenance financing, and manage vehicle data. Mecho will also launch an app for spare parts vendors and workshop owners in 4Q23.
“In our original business model, our core focus was on vehicle maintenance and repair. But we soon realised a much larger issue—there was an extreme scarcity of high-quality spare parts in the market. Spare parts vendors face frequent stockouts and struggle to access inventory financing. In our marketplace, vendors can source inventory from leading aftermarket spare parts manufacturers and access credit. By solving for spare parts stockouts, we can help solve one of the biggest problems in our industry,” said Olusegun Owoade, Mecho Autotech CEO/co-founder.
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