Mecho Autotech Revolutionizes Auto Maintenance with $2.4 Million Investment

In a significant development for Nigeria's automotive industry, Mecho Autotech, a startup specializing in automotive spare parts, vehicle repairs, and maintenance services, has successfully raised $2.4 million in a pre-Series A funding round.

The company is on a mission to address the pressing needs of the Nigerian market, where more than 90% of the country's 12 million registered vehicles, primarily used, require regular maintenance to prevent recurrent breakdowns.

Mecho Autotech's core business model revolves around connecting vehicle owners, both individuals and fleet operators, with a network of trusted workshops specializing in vehicle repairs and maintenance.

In Nigeria, consumers typically have three options for addressing automotive repair needs: relying on Original Equipment Manufacturer (OEM) mechanics, aftermarket mechanics, or roadside repair services.

OEM technicians offer high-quality but relatively expensive services as they use in-house parts. In contrast, aftermarket and roadside mechanics are more affordable but tend to compromise on quality.

Since its establishment in 2021, Mecho Autotech has already serviced over 6,000 vehicles from a diverse clientele, spanning both business-to-business (B2B) and business-to-consumer (B2C) segments.

This comprehensive service is facilitated through a network of over 110 approved workshops, including three that Mecho Autotech owns.

When interviewed by Tage Kene-Okafor from TechCrunch, CEO Olusegun Owoade disclosed that the company's primary operational challenges have stemmed from sourcing quality replacement parts.

Mecho Autotech, in its announcement last January, outlined plans to allocate a portion of its seed funding toward expanding its after-sales spare parts value chain.

The startup also intends to leverage its recent pre-Series A investment to strengthen wholesale distribution of these parts.

The pivotal financing for Mecho Autotech comes through strategic bank partnerships.

Currently, the company has secured access to a credit line of ₦650 million (approximately $675,270) through a single banking partnership.

While a substantial portion of Mecho Autotech's revenue is derived from commissions on vehicle repairs and additional income generated from maintenance subscriptions, CEO Owoade confirmed that the firm is actively engaged in discussions with other banks to expand its credit line, signaling the company's intention to further propel its mission in Nigeria's thriving automotive service sector.