The news:
- Mecho Autotech, a Nigerian startup that offers vehicle repairs and maintenance has raised $2.4 million pre-Series A to expand into wholesale spare parts distribution.
- The funding round had the participation of Global Brain Corporation, Ventures Platform, and Uncovered Fund.
- Mecho will use the funding to build a marketplace for spare parts and offer financing to workshop owners and spare parts dealers.
Nigeria spends $10 billion annually on the importation of vehicle spare parts. Mecho Autotech wants to capture that market with its $2.4 million pre-Series A.
The investment had the participation of Global Brain Corporation, Ventures Platform, and Uncovered Fund.
Launched with the mission to provide vehicle maintenance and repair, the startup soon realised that spare parts were scarce in the country.
According to the CEO and Co-founder, Olusegun Owoade, "Spare parts vendors face frequent stockouts and struggle to access inventory financing.
"In our marketplace, vendors can source inventory from leading aftermarket spare parts manufacturers and access credit. By solving for spare parts stockouts, we can help solve one of the biggest problems in our industry.”
The funding will help Mecho launch a B2B distribution platform for aftermarket spare parts. Using its network of manufacturers in Asia, the startup will provide parts like batteries, tyres and suspension, to wholesalers in Nigeria.
Mecho plans to launch three platforms that will enable accurate data collection about the demand for spare parts in Nigeria. One of the apps will help corporate fleet owners get access to standard workshops in the country, provide maintenance data, and maintenance financing.
Another platform will be built for workshops to get access to to vetted spare parts dealers while also providing them with finance of up to ₦10 million in partnership with banks.
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While Mecho says spare parts distribution is an expansion of its offerings, its viability could mean a complete pivot from vehicle repairs and maintenance.
