Nigeria's Mecho Autotech secures $2.4M to ease procurement of automobile spare parts
In Nigeria, where vehicle maintenance and repair services are in high demand, Mecho Autotech is on a mission to transform the automotive aftermarket space.
Founded in 2021, the startup initially focused on providing these essential services but quickly identified a major problem plaguing the industry—a critical shortage of high-quality spare parts.
To tackle this issue head-on, Auto-tech startup, Mecho Autotech has successfully raised in a recent $2.4 million in pre-Series A funding, building upon the $2.15 million seed funding it raised in February 2022 to revolutionize spare parts accessibility in Nigeria.
Featuring investors like Global Brain Corporation, Ventures Platform, and Uncovered Fund, the newly acquired capital will empower Mecho Autotech to launch its innovative B2B distribution platform for aftermarket spare parts, which constitute a significant 80% of the value within Nigeria's US$8 billion automotive industry.
By leveraging its partnerships with spare parts manufacturers in Asia - including Honda, Nissan, Iveco, Tata and others, the startup intends to create an online marketplace where spare parts vendors and workshop owners can easily access high-quality spare parts like tyres, suspension parts, brakes, and batteries at affordable prices. Additionally, it will collaborate with local banks to offer up to NGN10 million (US$13,000) in credit for inventory financing, working capital, and financing for vehicle maintenance and parts procurement.
Summarily, Mecho Autotech plans to streamline the entire spare parts procurement process through separate apps for corporate fleet owners, spare parts vendors, and workshop owners. With an aim to resolve Nigeria's longstanding spare parts scarcity, Mecho Autotech is poised to bring efficiency and reliability to the automotive aftermarket.
