Nigeria has more than 12 million registered vehicles, and approximately 90% of them are used cars that need frequent checkups to prevent recurring breakdowns.
Given this number, one would expect effective vehicle maintenance to be standard in Nigeria. But that’s not the case: Most of the service providers in the country, usually auto mechanics, are inadequately trained and lack the needed tools to provide consistent, quality service.
A couple of startups like Y Combinator-backed Mecho Autotech are beginning to digitize this process. The company which connects car owners with quality vehicle repair and maintenance providers has raised a $2.15 million seed round.
The company, in a statement, said it will use the capital “to expand its multi-channel service capacity, engineering team, and marketing budget for B2C acquisition.”
In Nigeria, retail customers typically have three options for making vehicle repairs: use original equipment manufacturer (OEM) mechanics, semi-organized or aftermarket mechanics, or roadside mechanics. There are very few OEM mechanics, such as Elizade and Toyota. They provide quality but expensive services because car parts are manufactured in-house. On the other hand, the services of the aftermarket and roadside mechanics are pretty affordable to most vehicle owners, though quality varies; most times, it tilts to the flawed end.
Founded by Olusegun Owoade and Ayoola Akinkunmi, Mecho Autotech has created a network of vetted in-house and third-party mechanics with the customer affordability (of businesses and retail customers) in mind, Owoade told TechCrunch. “So what we did was create a network of vetted technicians across 35 states out in Nigeria to tackle the poor vehicle maintenance culture in Nigeria,” he said.
“We also created an insurance plan because we know that motor insurance is compulsory. So if we have an insurance plan that has an annual maintenance plan embedded, it’s more or less substituting this for the after-sales package people with brand new vehicles typically get.”
The company said its round was “oversubscribed by over 300%” and claims to be the largest investment to date for a vehicle maintenance startup in sub-Saharan Africa, which is mainly because Mecho Autotech plays in a niche market with relatively few competitors. However, one that comes to mind is Autochek, whose vehicle maintenance services are just one aspect of its all-encompassing automotive business.
Investors involved in Mecho’s seed round include Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid and Tekedia Capital.
