Auto repair platform Michanic raises $400,000 in debt financing
MultiChoice Innovation Fund Awarded South African Vehicle Service and Repair Platform mechanical a loan of US$400,000 so that it can continue to improve its technology and spread throughout the country.
Lesetja Dikgale founded Michanic in 2016, which allows customers to request immediate maintenance and repair quotes through its online platform and save up to 35% compared to dealerships and independent garages.
The company has serviced hundreds of cars since its inception and today works with over 100 partner technicians across Gauteng and Johannesburg.
Following the acquisition of US$400,000 debt from the MultiChoice Innovation Fund, it is now preparing for more growth.
According to Dikgale, Michanic has grown over 80% annually and continues to innovate in the aftermarket industry.
He added that customers are under extreme time and financial constraints, and Michanic offers a solution to both problems by offering car maintenance and repair at customers’ homes for their convenience. Additionally, due to its reduced overhead, Michanic can reduce maintenance costs, in some cases by more than 40%.
Michanic will be able to expand in the Eastern Cape, Mpumalanga and the rest of the Western Cape with funding from the MultiChoice Innovation Fund. Moreover, it wants to expand in the wider SADC area.
The startup’s CTO, Thabelo Mulelu, said the money will also help Michanic advance its technology and give it the ability to reach out to other customers who are interested in or need its services.
Additionally, it will help the company expand employment prospects for young, skilled mechanics across the country.
Over the past year, the automotive industry as a whole has seen emerging styles, adjustments and concerns. The rapid digitization of the service sector is one of the biggest transformations the industry has seen since the outbreak began.
As more and more businesses embrace a digital strategy as an essential part of operating a sustainable business, this change is here to stay and will continue to progress, and the automotive sector has embraced these changes.
Clearly, the digitization of automotive service and repair is crucial given the rapid increase in internet adoption. It’s a good idea for auto owners to turn to planning services like Michanic, so they can get the services they need without any hassle.
Moreover, despite its youth, this industry is getting the attention it deserves, and it is hoped that more investors will enter the market to help platforms like Michanic grow and expand into new areas.
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