SA’s Michanic secures $400k debt capital from MultiChoice Innovation Fund
South African mobile car service and repair platform Michanic has secured US$400,000 in debt capital from the MultiChoice Innovation Fund to help it continue to develop its technology and expand across the country.
Formed in 2016 by Lesetja Dikgale, Michanic allows users to request instant service and repair quotes from its online platform, saving up to 35 per cent compared to dealerships and independent garages in the process.
The startup currently works with over 100 partner mechanics in Gauteng and Johannesburg and has serviced thousands of cars since inception. It is now planning for further expansion after securing US$400,000 in debt from the MultiChoice Innovation Fund.
“Michanic has achieved a growth rate of over 80 per cent year-on-year, and continues to innovate in the aftermarket automotive industry,” Dikgale said.
“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 per cent.”
The funding from the MultiChoice Innovation Fund will help Michanic expand into the Eastern Cape, Mpumalanga and the rest of the Western Cape. It also aims to expand into the wider SADC region.
“The funding will also assist us to improve our technology and also provide us with the ability to reach more customers who are in need or looking for our services,” said Thabelo Mulelu, the startup’s CTO. “It will also help us to create more job opportunities for young skilled mechanics across the country.”
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