Auto Repair Platform, Michanic raises $400k in Debt Financing from MultiChoice Innovation Fund
South African auto servicing and repair platform, Michanic, has received a loan from the MultiChoice Innovation Fund for $400k so that it may keep developing its technology and hasten its expansion across the country.
In contrast to dealerships and independent garages, consumers of Michanic can get rapid service and repair quotes via the company’s online platform and save up to 35%. Michanic was launched in 2016 by Lesetja Dikgale.
Given the tremendous rise in digital adoption, it is obvious that digitizing vehicle maintenance and repair is essential. It’s a good idea for car owners to consider making an appointment with a company like Michanic so they can get the services they need without any fuss.
The automotive industry as a whole has seen new trends, changes, and issues throughout the past year. One of the biggest changes the industry has gone through since the outbreak of the virus is the quick digitalization of the service sector.
According to Dikgale, Michanic has achieved a growth rate of over 80% year-over-year and continues to innovate in the aftermarket automobile industry.
“Michanic has achieved a growth rate of over 80 per cent year-on-year, and continues to innovate in the aftermarket automotive industry.
“Customers are stretched to the limit in terms of finance and time, and we bring a solution to both those challenges by providing car service and repairs at their homes for their convenience, and because of our lower overheads, we are able to drive the cost of maintenance down, in some cases by over 40%,” said Dikgale.
A Look at how Michanic Operates
Michanic connects customers and fleet owners in South Africa with qualified, reputable mechanics. Users can get rapid service and repair quotes via Michanic’s online platform thanks to its 2016 launch. They can save up to 35% as compared to independent and dealership garages thanks to this.
Lesetja Dikgale struggled to find an expert to fix his car, so he started the South African firm Michanic. He built the website so that he could provide fixed-price mobile repair services. This represents a significant advancement in the current state of auto maintenance and repair.
“It dawned on me that other people may have similar challenges. After the chat with the mechanic to go into the partnership to find him work and share on the spoils, I put together a ZAR800 ($50) MVP that ran for over a month, and in that month we made $330,” Dikgale said.
The fact that cars spend the entire day in the shop is puzzling, says Dikgale. He thinks that a car service should only take two hours at most. This contributed to the problem of clients not being aware of the full cost of their service up front. Additionally, most customers rely on their cars for transportation and cannot afford to be without them for even a single day.
Michanic, which has a revenue-sharing arrangement with its affiliate mechanics, was initially self-funded. It later raised startup money in 2019. According to Dikgale, the business was looking for growth investment because its operations wasn’t generating enough income.” The number of registrations has increased month after month.