Mech2u.com Founders of the car servicing company peg the automotive aftermarket at USD$100million and eye the huge SE Asian market worth $1billion.
Singapore-based automobile startup Mech2u.com said Monday it has raised USD 1million in angel investment as the startup is looking to expand its business.
The company will use the recent funding to scale its operations and take the business to 2 current cities from the current 2 cities. It runs 12 mechanic centers and workshops, which it wants to expand to 1,000 by the end of 2022 across SE Asia.
Earlier in January this year, it raised USD 500,000 in Seed funding from various investors.
Mech2u.com offers doorstep pickup and delivery of vehicles for repairing and servicing. It runs a network of franchise-owned stores which is operated and controlled by the company. Singapore’s repair and servicing industry is expected to hit around USD $100million due to high renewal vehicle rates, per the founders of the company.
Started by Colin Chow who is a car workshop veteran with over 30yrs of experience and Derrick Seeto who has being in the IT industry for over 20 yrs, in earlier 2019, the company works with existing car repair garages as well as their own outfits around the city and provide them with the inventory of spare parts. It claims to have an inventory of 1000 spare parts and charges a fixed price to customers. According to the company its repair services are 40% cheaper than what is offered by the auto manufacturers and other businesses in the organized repair market. One of the reasons, the company has managed to keep the pricing lower is due to its active involvement with local and small garages, thus ensuring higher utilization of these mechanics shops as well as their inventory.
According to Colin, working with the existing garages and workshops has helped the company to not overspend and put all their efforts into services that they want to offer without huge Capital outlay. We believe in the sharing economy.
“The car repair market is oversupplied, as there are more than 3000 multi-brand garages across the city already. Because of this, you do not see a high utilization rate across garages on an average,”
Our efforts are to help the existing workshops become more efficient with the resources they have and if they don’t they can still earn money through lead generation as another partner workshop can take on the load, explained Derrick.
Technology-enabled auto companies this year have managed to raise money despite a steep slowdown in India’s auto sector. Earlier this year CarDekho, an online platform that facilitates selling and buying new and second-hand vehicles, raised USD 70 million in Series D round from Chinese investor Ping An Global Voyager Fund. Its competitor Cars24 also raised USD 100 million led by London-based investment firm Unbound and Toronto-based KCK Global.