The MultiChoice Innovation Fund has granted South African vehicle service and repair platform Michanic a loan for US$400,000 so that it can continue to improve its technology and spread throughout the nation.
Lesetja Dikgale founded Michanic in 2016, which enables customers to seek immediate service and repair quotations via its online platform and save up to 35% in comparison to dealerships and independent garages.
The firm has serviced hundreds of cars since its founding and today collaborates with over 100 partner technicians across Gauteng and Johannesburg.
Following the acquisition of a US$400,000 debt from the MultiChoice Innovation Fund, it is currently preparing for more growth.
According to Dikgale, Michanic has grown at a pace of more than 80% annually and keeps breaking new ground in the aftermarket car sector.
He added that customers are under extreme time and financial pressure, and Michanic offers a solution to both problems by offering car maintenance and repairs at customers’ homes for their convenience. Additionally, because of its lower overhead, Michanic can reduce the cost of maintenance, in some cases by over 40%.
Michanic will be able to grow in the Eastern Cape, Mpumalanga, and the rest of the Western Cape thanks to funding from the MultiChoice Innovation Fund. Additionally, it wants to grow into the larger SADC area.
The startup’s CTO, Thabelo Mulelu, said that the money will also help Michanic to advance its technology and give it the potential to contact additional clients who are interested in or in need of its services.
Additionally, it will assist the business in expanding employment prospects for young, competent mechanics across the nation.
Techbuild’s Take
In the past year, the automobile sector as a whole has experienced emerging styles, adjustments, and concerns. The fast digitalization of the service sector is one of the largest transformations the industry has experienced since the start of the epidemic.
With more companies adopting a digital strategy as a critical component of operating a sustainable business, this change is here to stay and will continue to advance, and the automobile sector has embraced these changes.
Clearly, the digitalization of automotive maintenance and repair is crucial given the rapid increase in internet adoption. It’s a smart idea for automobile owners to look into scheduling services like Michanic, so they can obtain the services they require without any hassle.
Additionally, despite its youth, this industry is receiving the attention it deserves, and it is hoped that more investors will enter the market to help platforms like Michanic develop and spread to new areas.
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