Mecho Autotech operates a platform that connects individual vehicle owners and corporate fleets with approved workshops for repairs and maintenance while expanding into wholesale spare-parts importation and distribution. Since founding in 2021, the firm has serviced more than 6,000 cars through over 110 approved workshops (three owned). Its core revenue comes from commissions on vehicle repairs and ancillary maintenance-subscription revenues. Management says difficulties sourcing quality replacement parts drove the move into wholesale distribution and parts procurement. The company plans to supply inventory to 150 parts vendors and develop supply-chain apps in Q4 2023 to enable inventory finance for vendors, working capital for workshops, and maintenance finance for fleets. Mecho has access to a bank credit line of ₦650 million (~$675,270) and will enable vendors and workshops to access up to ₦10 million (~$10,380) in financing via bank partners. The product roadmap ties spare-parts distribution, financing, and B2B/B2C marketplace flows to improve inventory availability and standardize parts quality. Mecho Autotech operates a network of vetted in-house and third-party mechanics across Nigeria, targeting both B2B fleet customers and retail vehicle owners via a mobile app and mobile service vans. The company started work in 2019, fully launched in April 2021 and participated in Y Combinator’s Summer 2021 batch. It currently serves 40 B2B customers that own over 20,000 vehicles, has serviced over 2,000 vehicles, and has onboarded over 7,000 third-party mechanics across three Lagos workshops. Mecho charges roughly 15% commission (10% service, 5% spare parts) and is building a spare-parts value chain that has already served more than 100 third-party mechanics. The startup launched a B2C mobile application last month and plans to scale B2C acquisition through subscription plans and a pay-per-download arrangement on the Google Play Store. It will use new funding to expand multi-channel service capacity, grow its engineering team, scale its marketing for B2C, and deepen its spare-parts and mobile service capabilities.

Total raised

$5M

Funding rounds

2

Latest round

Series A

Latest activity

Sep 2023