Mecho Autotech, a Nigerian startup that gives high quality automotive spare components, automobile repairs and upkeep providers has raised $2.4 million.
Mecho Autotech, a Nigerian startup that gives high quality automotive spare components, automobile repairs and upkeep providers, has raised $2.4 million in a pre-Series A funding round. Global Brain Corporation, Ventures Platform, and Uncovered Fund backed the round.
Per Mecho Autotech, the fund will likely be used to launch a B2B spare components distribution platform. In partnership with native banks, the startup will supply as much as ₦10 million ($13,428) in financing to automotive provide chain gamers. They intention to create a demand-driven ecosystem for Nigeria’s $8 billion automotive after-sales market by tailor-made software program options.
In February 2022 Mecho Autotech secured $2.15 million in seed funding to increase its automobile upkeep providers, with the preliminary aim of offering automobile upkeep and restore providers. However, the startup recognized the scarcity of spare components in the nation. Its pre-Series A funding of $2.4 million positions the startup to focus on Nigeria’s annual $10 billion
spending on imported automobile spare components.
Speaking on the funding, Hiroto Sorita, Global Brain Corporation Director, stated, “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 components producers in Asia, Mecho’s on-line market area will permit spare components distributors and workshop homeowners to purchase inexpensive high-quality spare components. By the tip of Q3, Mecho Autotech plans to launch an app for company fleet homeowners to find workshops, entry upkeep financing, and handle automobile knowledge. Mecho will even launch an app for spare components distributors and workshop homeowners 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,” stated Olusegun Owoade, Mecho Autotech CEO/co-founder.
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