Nigeria is home to over 12 million registered vehicles, with 90% being used cars that require regular maintenance to avoid breakdowns. Despite this, the vehicle maintenance ecosystem in the country is riddled with inefficiencies. Most service providers, including auto mechanics, lack proper training and tools, leading to inconsistent quality.
To address these challenges, Mecho Autotech, a Lagos-based startup, is working to modernize the vehicle maintenance process. The company recently secured $2.15 million in seed funding, which it plans to use for scaling its operations, expanding its engineering team, and boosting its marketing efforts.
Addressing a Market Gap
In Nigeria, car owners typically choose between three types of vehicle repair services: Original Equipment Manufacturer (OEM) mechanics, semi-organized or aftermarket mechanics, and roadside mechanics. OEM mechanics, such as Toyota service centers, offer high-quality but costly services, while aftermarket and roadside mechanics are more affordable but often unreliable.
Founded by Olusegun Owoade and Ayoola Akinkunmi, Mecho Autotech provides an alternative. The startup has built a network of vetted in-house and third-party mechanics, ensuring affordability and quality for both businesses and individual customers.
“We’ve established a network of skilled technicians across 35 states in Nigeria to address the issues of poor vehicle maintenance,” said Owoade. The company also offers an insurance plan that combines mandatory motor insurance with an annual maintenance package, providing a solution akin to the after-sales support offered for new cars.
Tackling Inefficiencies
Owoade’s interest in vehicle maintenance emerged during his time as Chief Risk Officer at a trucking company, where he observed that most incidents were due to mechanical failures. Partnering with Akinkunmi, an experienced automobile engineer, the duo launched Mecho Autotech in 2021 after two years of development.
The startup initially focused on business-to-business (B2B) clients, including fleet operators and corporate entities, to refine its services. Today, Mecho Autotech works with over 40 B2B clients, managing more than 20,000 vehicles and servicing over 2,000 of them.By consolidating vehicle repair and maintenance processes under a single platform, the company eliminates the inefficiencies of dealing with multiple workshops.
Expanding Services
Mecho Autotech has onboarded over 7,000 third-party mechanics and operates three workshops in Lagos. The company also offers a spare parts supply chain that has served numerous mechanics and corporate clients.In addition to its B2B services, Mecho recently launched a mobile app targeting individual car owners. The app enables users to subscribe to maintenance plans and access on-demand services, where mechanics can perform routine maintenance at the customer’s preferred location.
“Our mobile services cater to individual customers who prioritize convenience,” Owoade explained. Subscription plans cover essential services such as oil changes, brake pad replacements, and more.
Scaling Up
The company aims to expand its reach to 25,000 customers by year-end, leveraging digital marketing and partnerships to drive growth. It has also adopted a pay-per-download strategy on app platforms to increase visibility.
Investors in Mecho Autotech’s seed round include Future Africa, HoaQ Capital, Cathexis Ventures, V8 Capital, Silver Squid, and Tekedia Capital. The funding marks a significant milestone for the startup, positioning it as a leading player in Nigeria’s niche vehicle maintenance sector.
With plans to further scale its operations and explore new markets, Mecho Autotech is poised to revolutionize how Nigerians maintain and repair their vehicles, bridging the gap between quality and affordability.
