Sunday , 23 June 2024
Tech Business


Fixit45, a leading player in the automotive technology aftermarket sector, has announced the successful conclusion of its pre-seed funding round, securing a substantial $1.9 million in equity and working capital. The funding round was spearheaded by Launch Africa Ventures, and featured participation from distinguished investors such as Soumobroto Ganguly and Dave Delucia, along with a diverse group of angel investors.

This injection of capital represents a significant achievement for Fixit45 as it embarks on a journey to expand its presence and influence in the African automotive aftermarket sector. The company has allocated these funds for strategic expansion initiatives, with a primary focus on enhancing its automotive repair business while simultaneously intensifying its efforts in distributing spare parts through its online-to-offline platform, Additionally, Fixit45 is gearing up to enter the East African market, with Kenya and Uganda being key target locations.

Pankaj Bohhra, Co-founder & COO of Fixit45, expressed enthusiasm about the financial support, stating, “This funding marks a pivotal moment for Fixit45. We are deeply grateful to our investors for believing in our vision and our unwavering commitment to revolutionize the African automotive aftermarket sector. With this infusion of capital, we are well-prepared to move forward with our expansion goals.”

Expansion in Spare Parts Distribution
Improving the accessibility and availability of high-quality automotive spare parts is a central element of Fixit45’s expansion strategy. The company aims to optimize the supply chain to ensure that both individual consumers and businesses in the automotive sector benefit from more efficient processes.

Entry into the East African Market
Fixit45’s expansion plan extends to East Africa, with a strong emphasis on entering the markets in Kenya and Uganda. Given the significant growth in the automotive industry in this region, Fixit45 is positioned to establish a robust presence and provide essential auto services and spare parts to meet the evolving demands of local customers.

Investor Confidence
The involvement of Launch Africa Ventures, Soumobroto Ganguly, Dave Delucia, and a diverse group of angel investors underscores their confidence in Fixit45’s business model and its growth potential. These investors bring not only financial support but also valuable expertise and networks that will further propel the company’s expansion efforts.

Janade du Plessis and Zachariah George, Co-Managing Partners at Launch Africa Ventures, expressed their excitement about the partnership, stating, “We are thrilled to collaborate with Fixit45 in reshaping the African automotive aftermarket. Fixit45 has an impressive team, and its platform offers a seamless experience throughout the automotive aftermarket value chain. We are impressed by their unwavering commitment to excellence, compliance, and accountability. We have full confidence that the company is well-prepared to achieve its ambitious objectives.”

Fixit45’s successful pre-seed funding round represents a significant milestone in its journey. With a clear vision and strategic allocation of resources, Fixit45 is poised to have a profound impact on the automotive aftermarket sector, benefiting not only customers in Nigeria but also in East Africa and beyond.

The increasing demand for high-quality automotive repair and maintenance services in Nigeria, driven by the aging vehicle fleet and challenging road conditions, has motivated Fixit45, a technology-driven automotive platform, to redefine the narrative of the automotive industry.

Established in 2021, Fixit45 has built an extensive network of over 300 operational workshops spanning nine Nigerian cities, including Lagos, Abuja, Port Harcourt, Ibadan, Ilorin, Enugu, Owerri, and Jos, serving nearly 4,000 clients.

Furthermore, Fixit45 collaborates with 1,200 spare parts manufacturers, distributors, and retailers, forming partnerships with industry leaders such as Toyota, Nissan, Honda, Hyundai, Ford, Jeep, Mitsubishi, Mikano, GAC Motors, and many other prominent distributors.

The company also boasts a solid customer base, including Mano, Drive45, Moove, Jotna, Gokada, FBN Quest, Jiji, Pepsico, Prestige Assurance, and Chellerams Plc.

The African automotive industry was valued at US$ 30.44 billion in 2021 and is projected to reach US$ 42.06 billion by 2027. The automotive aftermarket industry plays a crucial role in many African economies, contributing to economic growth, improving road safety, and enhancing the quality of life. Reliable mobility serves as a catalyst for social and economic inclusion, facilitating access to employment, education, and public services.

According to data from the National Bureau of Statistics (NBS), Nigeria, with an estimated population of 200 million, has over 12 million registered vehicles, of which 90% are imported and pre-owned, resulting in a motorization rate of only 0.06 vehicles per person. The Nigerian automotive aftermarket industry remains fragmented, with informal service providers often lacking technical expertise and warranty support for repairs.

As the costs of purchasing new or foreign-used vehicles continue to rise, a growing trend has emerged where vehicle owners prefer to upgrade and repair their existing vehicles to enhance their mobility assets and trade-in value. This shift underscores the need for high-quality repair and maintenance services in the market.

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