Mecho autotech
Mecho Autotech has secured a $2.15 million seed round, which is supported by Y Combinator. The start-up links car owners with reliable mechanics for repairs and upkeep. More than 12 million automobiles in Nigeria are registered, and 90% of them are old cars that require regular maintenance.
OEM mechanics
Retail customers in Nigeria typically have three alternatives for auto repairs: they can go to roadside technicians, tractor-trailer or market mechanics, or official electronics company (OEM) mechanics. There aren't many OEM mechanics like Toyota and Elizade. The majority of car owners can fairly afford the services provided by industry and backup mechanics.
Third-party mechanics
With the affordability of clients (both corporate and individual customers) in consideration, Mecho Autotech has built up a network of certified in-house and outside mechanics. After-sales plans are automated service plans for new vehicles. Still, in a nation where most individuals buy older cars and drive without any thought to upkeep, their offer is alluring.
Business clients
Mecho Autotech chose to deal with commercial clients first, according to Owoade, since it provided the business time to hone its service. Olufela Owoade, the company's founder, claims that it is creating a value chain for replacement parts and that over 100 third-party technicians have already benefited from it. Additionally, it will aid in the scaling of Mecho Autotech's smartphone app, which was recently made available to B2C clients.
Success based arrangement
The CEO claimed that to get to this level; his business has a success-based contract with the Google Play Store, where it will use a pay-per-download business strategy in return for promoting Mecho's app.
"A strong network of workshops with the ability to meet their demands is necessary for B2B. We are attempting to organize our supplier base in this way to cater to both the B2B and B2C sides of the business."
Future Africa
It represents the biggest investment ever made in a sub-Saharan African firm that provides automobile servicing. Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid, and Tekedia Capital are some of the investors who took part in Mecho's seed round.
