Mecho Autotech, the Nigerian automotive technology platform, has secured $2.4 million in a pre-Series A funding round to transform the automotive aftermarket industry. The funding round featured Global Brain Corporation, Ventures Platform, and Uncovered Fund.
With this investment, Mecho Autotech plans to launch a B2B distribution platform for aftermarket spare parts. These parts constitute a substantial 80% of Nigeria’s $8 billion automotive industry.
Established in April 2021 by Ayoola Akinkunmi and Olusegun Owoade, Mecho Autotech is an on-demand auto repair and maintenance platform for individuals and businesses in Africa
The startup will leverage its partnership with Asian aftermarket spare parts manufacturers to offer an array of high-demand spare parts, including tires, suspension parts, brakes, and batteries, at competitive prices. By addressing the persistent issue of spare parts stockouts, Mecho Autotech will tackle one of the industry’s most significant challenges head-on.
Additionally, Mecho Autotech will partner with local banks, to provide credit support of up to 10 million naira to key industry players. This support encompasses inventory financing for vendors, working capital for workshop owners, and financing solutions for corporate fleet owners seeking vehicle maintenance and parts procurement.
Furthermore, the startup is launching an app by the end of December designed exclusively for corporate fleet owners, offering resources to discover certified workshops, access maintenance financing, and manage vehicle maintenance records effectively.
This platform will empower workshops to procure spare parts seamlessly and secure working capital, while parts vendors can access inventory financing and efficiently manage their sales operations.