Mecho Autotech, backed by Y Combinator, has raised $2.15 million in a funding round aimed at scaling car owners’ connection to quality vehicle repair and maintenance providers.
The fund, which Mecho Autotech says is more than 300% oversubscribed, will allow the company to expand its multi-channel service capability, engineering team and marketing budget for B2C acquisition.
Investors in the round included Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid and Tekedia Capital.
Founded by Olusegun Owoade and Ayoola Akinkunmi, Mecho Autotech has created a network of in-house and third-party vetted mechanics with the affordability of customers (corporate and retail) in mind.
The company has created a network of licensed technicians in 35 states in Nigeria to combat the poor vehicle maintenance culture in the country. Added to this is the creation of an insurance plan that incorporates an annual maintenance plan, more or less replacing the after-sales package – automated maintenance plans for new cars – that people with new vehicles usually get.
So far, Mecho Autotech has onboarded over 7,000 third-party mechanics across three workshops in Lagos serving B2B customers: Shuttlers, Moove, Tolaram Group and Kobo. It charges about 15% commission fee – 10% service fee and 5% spare part fee.
The company is developing an aftermarket parts value chain that has already served over 100 third-party mechanics and several large ticket inventory purchases for B2B customers.
Part of the seed money would go into expanding that capacity. It will also help scale Mecho Autotech’s mobile app, which it launched for its B2C customers last month. The two-year-old startup said it aims to reach 25,000 customers this year and charge them monthly, quarterly or annual subscription fees.