Mecho Autotech secures $2.4M to expand to wholesale spare parts distribution

Mecho Autotech has ventured into the market with an innovative offering of spare parts along with repair and maintenance services, earning $2.4M in pre-Series A funding.

• Problem Identification: Nigeria houses an overwhelming 90% of the country's 12 million-plus registered vehicles, the majority of which are second-hand and require regular upkeep. However, the available repair options - high-quality yet expensive OEM mechanics or affordable but low-quality aftermarket and roadside mechanics - fall short of meeting the need effectively.

• The Solution - Mecho Autotech: Since its inception in 2021, Mecho Autotech has successfully handled over 6,000 car repairs and maintenance for both individuals and businesses, leveraging its network of 110 approved workshops.

• Challenges: The quest for quality replacement parts has been a hurdle, but CEO Olusegun Owoade has a strategy in place.

• The Future: With the newly secured funds, Mecho Autotech plans to expand its after-sales spare parts value chain, with ambitions to become a leading wholesale distributor.

• Wholesale Distribution: The Nigerian automotive aftermarket spare parts and maintenance business is a massive $8B industry. The company aims to address the fragmented supply chain and offer organized, effective solutions.

• Partnership: Mecho Autotech has teamed up with Tokyo-based Global Brain Corporation to import and distribute aftermarket spare parts.

• Tech Innovations: Aiming for a Q4 2023 launch, Mecho Autotech's upcoming app promises to resolve inventory finance issues and provide spare parts to workshops and vendors.

• Data Collection: The app will also serve as a valuable tool for gathering data on spare parts demand to better gauge market supply.

In collaboration with banks, Mecho Autotech offers up to ₦10 million (~$10,380) in financing to supply chain stakeholders.