Fixit45 Secures $1.9m Pre-Seed Investment to Accelerate Expansion to Other African Market
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, Africa’s most active VC investment firm, and featured participation from distinguished investors such as Soumobroto Ganguly and Dave Delucia, along with a diverse group of angel investors.
This infusion of capital marks a significant milestone as Fixit45 sets out to expand its footprint and influence within Africa’s automotive aftermarket industry. The company has earmarked these funds for strategic expansion plans, with a particular focus on its automotive repair business, while concurrently intensifying efforts in spare parts distribution via its online-to-offline platform, xparts.africa. Additionally, Fixit45 is gearing up for market entry into East Africa, notably targeting Kenya and Uganda.
Pankaj Bohhra, Co-founder & COO of Fixit45, expressed his excitement regarding the financial support, stating, “This funding represents a pivotal moment for Fixit45. We are profoundly grateful to our investors for their faith in our vision and our unwavering commitment to revolutionizing the African automotive aftermarket sector. With this capital infusion, we are well-positioned to advance towards our expansion objectives.”
Expansion into Spare Parts Distribution
Enhancing the accessibility and availability of top-quality automotive spare parts is a central component of Fixit45’s expansion strategy. The company seeks to optimize the supply chain, ensuring that both individual consumers and businesses within the automotive sector benefit from streamlined processes.
East Africa Market Entry
Fixit45’s expansion strategy encompasses East Africa, with a primary focus on penetrating markets in Kenya and Uganda. With the region experiencing substantial growth in the automotive industry, Fixit45 is poised to establish a robust presence, providing essential auto services and spare parts to meet the evolving demands of local customers.
The participation 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 potential for growth. These investors bring not only financial support but also invaluable expertise and networks that will further propel the company’s expansion endeavors.
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 transforming the African automotive aftermarket. Fixit45 boasts a formidable team, and its platform offers a seamless experience across the automotive aftermarket value chain. We are impressed by their unwavering commitment to excellence, compliance, and accountability. We have every confidence that the company is well-prepared to achieve its ambitious goals.”
Fixit45’s triumphant pre-seed funding round marks a significant milestone in its journey. Armed with a clear vision and a strategic allocation of resources,
Fixit45 is poised to make a profound impact on the automotive aftermarket sector, ultimately benefiting customers not only in Nigeria but also in East Africa and beyond.
The escalating demand for quality automotive repair and maintenance services, driven by the aging vehicle fleet and road conditions in Nigeria, has spurred Fixit45, a tech-enabled automotive platform, to embark on a mission to redefine the automotive industry narrative.
Founded in 2021, Fixit45 boasts an impressive network of 300+ operational workshops spread across 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 enjoys 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 predicted to reach US$ 42.06 billion by 2027. The automotive aftermarket industry plays a pivotal role in many African economies, contributing to economic growth, road safety improvement, and enhanced quality of life. Reliable mobility is a catalyst for social and economic inclusion, facilitating access to employment, education, and public services.
According to the National Bureau of Statistics (NBS) data, Nigeria, with an estimated population of 200 million, boasts over 12 million registered vehicles, of which 90% are imported and pre-owned, representing a motorization rate of just 0.06 vehicles per person. The Nigerian automotive aftermarket industry remains fragmented, with informal service providers often lacking technical competence and warranty support for repairs.
With the escalating costs of purchasing new or foreign-used vehicles, a growing trend has emerged, with vehicle owners preferring to upgrade and repair their existing vehicles to enhance their mobility assets and trade-in value. This shift highlights the need for high-quality repair and maintenance services in the market.