Michanic, South Africa Mobile Car Service Receives $400k Debt Capital From MultiChoice Innovation Fund
Michanic, a South African mobile car service and repair platform, has received US$400,000 in debt capital from the MultiChoice Innovation Fund to assist it in further developing its technology and expanding across the country.
Michanic, founded in 2016 by Lesetja Dikgale, allows users to request instant service and repair quotes from its online platform, saving up to 35% compared to dealerships and independent garages.
Since its inception, the startup has worked with over 100 partner mechanics in Gauteng and Johannesburg, servicing thousands of cars. After obtaining US$400,000 in debt from the MultiChoice Innovation Fund, it is now planning further expansion.
“Michanic has achieved a year-on-year growth rate of more than 80% 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 provide a solution to both of 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 down the cost of maintenance, in some cases by more than 40%.”
Michanic will be able to expand into the Eastern Cape, Mpumalanga, and the rest of the Western Cape thanks to funding from the MultiChoice Innovation Fund. It also intends to expand into the rest of the SADC region.
“The funding will also help us to improve our technology and reach more customers who are in need or looking for our services,” said Thabelo Mulelu, the startup’s CTO. “It will also help us create more job opportunities for young skilled mechanics across the country,” says the president.
