Mecho Autotech, a Nigerian vehicle repair and maintenance startup has raised a $2.15 million seed funding round to expand its capacity and acquire more customers.
The funding round which was oversubscribed by 300% saw participation from Future Africa, Hoaq Capital, Cathexis Ventures, V8 Capital, Silver Squid and Tekedia Capital.
The startup will use the capital to expand its multi-channel service capacity, engineering team, and marketing budget for B2C acquisition as it has currently built three mecho shops across Lagos.
While the startup also seeks to grow in B2C via a subscription service model and individual service requests, its B2B customers notably include some of Nigeria’s largest corporate fleets including Uber partner Moove, Tolaram Group as well as UAC Group.
What they are saying about the funding
Olusegun Owoade, a co-founder, Mecho Autotech 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.”
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Iyinoluwa Aboyeji, Future Africa’s founder and general partner, said his fund’s thesis was to back founders solving hard problems in large markets. He 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.”
What you should know
- The company says it operates both workshop (Mecho Shops) and mobile services (Mecho Mobile) and has already onboarded over 7,000 third-party mechanics to its platform.
- The startup was founded in 2021 by Olusegun and Ayoola Akinkunmi, and participated in the S21 batch of the Y combinatory accelerator last year.
- Mecho Autotech offers repair and maintenance services to businesses and consumers through in-house and third-party service capacity which has passed rigorous assessments.