Mecho Autotech, a Nigerian company that offers high-quality auto components as well as car maintenance and repair services, has closed a US$2.4 million pre-Series A funding round in order to launch a B2B distribution platform for aftermarket parts.
Global Brain Corporation, Ventures Platform, and Uncovered Fund took part in the pre-Series A funding.
Olusegun Owoade and Ayoola Akinkunmi founded Mecho Autotech in 2021 to provide businesses and customers with repair and maintenance services through in-house and third-party service capacity that has passed rigorous examinations.
Mecho’s online market space will enable spare parts merchants and workshop owners to obtain inexpensive high-quality spare parts by leveraging its ties with aftermarket spare parts manufacturers in Asia.
Stock-outs of essential spare parts, such as tires, suspension components, brakes, and batteries, will be avoided as a result.
Mecho will also provide credit up to NGN10 million (US$13,000) to participants in the automotive supply chain, including working capital, inventory financing, and financing for vehicle maintenance and part purchases.
“In our original business model, our core focus was on vehicle maintenance and repair. But we soon realized a much larger issue – there was an extreme scarcity of high-quality spare parts in the market. Spare parts vendors face frequent stockouts and struggle to access inventory financing. In our marketplace, vendors can source inventory from leading aftermarket spare parts manufacturers and access credit. By solving for spare parts stockouts, we can help solve one of the biggest problems in our industry,” said Owoade.
With the funding, the business will develop a B2B distribution network for aftermarket parts.
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