Mecho Autotech, a pioneering automotive technology platform, announced that it has successfully raised $2.4 million in a pre-Series A funding round. Global Brain Corporation, Ventures Platform, and Uncovered Fund participated in this funding round. Last year, the Y Combinator-backed Nigerian vehicle repair and maintenance startup, closed a $2.15 million seed investment.
In 2021, it raised an undisclosed amount of funding from Ingressive Capital, a VC targeting tech-enabled startups to boost the technological growth of the automobile sector in Nigeria. Mecho was one of the African startups selected by Y Combinator for its Summer 2021 batch.
Mecho Autotech is planning to use this investment to introduce an innovative B2B distribution platform for post-market spare parts. These components account for a significant 80% share of Nigeria’s thriving $8 billion automotive industry, and our unwavering commitment is to enhance their accessibility and affordability for all stakeholders.
Strategic partnerships with leading Asian aftermarket spare parts manufacturers enable Mecho Autotech to offer a wide range of high-demand spare parts, including tires, suspension parts, brakes, and batteries, all at competitive prices. This move addresses one of the industry’s most pressing challenges – spare parts stockouts.
Mecho Autotech’s ambitions extend beyond spare parts distribution. In collaboration with local banks, the company plans to provide credit support of up to 10 million naira to key industry players. This support includes inventory financing for vendors, working capital for workshop owners, and financing solutions for corporate fleet owners seeking vehicle maintenance and parts procurement.
Founded in 2021, Mecho Autotech started out with a focus on vehicle maintenance and repair. However, it quickly pivoted to address a recognized a more extensive issue – the severe shortage of high-quality spare parts in the market. The Mecho Autotech marketplace enables vendors to directly acquire inventory from leading aftermarket spare parts manufacturers, all while simplifying access to crucial credit facilities.
Hiroto Sorita, Director at Global Brain Corporation, shared insights regarding the investment, stating, “We recognize a substantial opportunity in the growth of Nigeria’s automotive aftersales market. Mecho boasts a capable entrepreneur at the helm and a team with extensive industry expertise. Global Brain is committed to assisting Mecho in sourcing parts from Asian suppliers and facilitating the expansion of new services into this fragmented market.”
Dotun Olowoporoku, General Partner at Ventures Platform, expressed enthusiasm for Mecho Autotech’s trailblazing role within Nigeria’s automotive sector, remarking, “We are thrilled to be part of Mecho Autotech’s journey as they pioneer innovation in Nigeria’s automotive industry. Mecho’s vision, centered on enhancing efficiency in the automotive spare parts supply chain through technology and financing, aligns seamlessly with our market-creating philosophy. We have full confidence in the team’s capacity to drive substantial positive transformation in the sector and enhance accessibility to quality spare parts for vehicle owners and workshop operators across Nigeria.”
