Mecho Autotech stated on February 9, 2022, that it had raised $2.15 million in a seed round to improve Nigeria’s auto maintenance. Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid, and Tekedia Capital were investors in Mecho’s seed round.
The company also stated that it would be able to expand its mission of providing accessible, affordable, and high-quality auto maintenance to Nigerians with the money. It stressed that if Nigerians service their cars and trucks regularly, they will avoid costly repairs and save money in the long run.
Mecho Autotech was founded by Olusegun Owoade and Ayoola Akinkunmi in 2021. According to Olusegun Owoade, “I first learned of the ripple effects of Nigeria’s poorly serviced cars when I worked at Kobo360, a logistics company. We matched thousands of truckers across Nigeria to companies that needed to ship cargo. We constantly monitored our platform to ensure that trucks were moving on schedule. Yet, often, they were stopped.” “When the safety team called truckers to find out why they were at a standstill, nine out of ten times, they’d said: motor don spoil. The engine overheated, a gasket blew, or a tire exploded.”
With this realization, Owoade designed a system that encourages early and regular maintenance checks to address Nigeria’s fragmented car repair sector. This has the consequence of extending vehicle lifespan and having a considerably more significant influence on productivity and road safety.
Owoade teamed up with Ayoola Akinkunmi, an experienced mechanic, to found Mecho Autotech aiming to develop a network of vetted in-house and third-party mechanics who are affordable to clients (both enterprises and retail).
Prospective clients must first download the company’s mobile app to use its services. When clients download the app and enter their VIN, an algorithm crunches the vehicle’s technical specifications, including make, model, year of manufacture, and engine cylinder. It also assesses maintenance costs and suggests a maintenance program. After that, the automobile owner is matched with either an in-house mechanic or a third-party mechanic.
The company claims to have serviced over 2,000 vehicles and works with more than 40 B2B clients with a combined fleet of more than 20,000 vehicles. It also claims that it employs over 7,000 third-party mechanics and has constructed four garages in Lagos, three of which will open in the coming months.