Starting and succeeding as a small business can be challenging. An innovative idea and identifying a gap in the market to address an unmet need can lay the groundwork for sustained success in the long run. One Johannesburg-based startup has done just that.
The Michanic team.
A business that services any car of any age anywhere. That’s the premise of Michanic – a company that offers a revolutionary approach to car repairs and maintenance. As a premier mobile mechanic service in South Africa, Michanic gives clients the ability to have their cars serviced on-site, whether they are at home or work, without needing to disrupt their daily routine.
With funding from the Asisa ESD Fund, proudly managed by Edge Growth, Michanic will expand beyond the five provinces it currently services. This support will help scale the majority black-owned innovative business, which combines commercial viability with social impact, offering a customer solution that is now poised for nationwide growth. This expansion will also provide more employment opportunities for mobile mechanics, who often face limitations in growing their operations.
“We are thrilled to have successfully concluded our transaction with the Asisa ESD Fund. This partnership represents a significant milestone for Michanic as we continue to revolutionise the automotive repair industry with innovative, customer-centric solutions,” says Michanic chief executive officer, Lesetja Dikgale, who founded the company with Thabelo Mulelu.
The Asisa ESD Fund was set up by the Association for Savings and Investment South Africa (Asisa) and is proudly managed by small business development specialist Edge Growth. One of the mandates of the fund is to target SMEs that demonstrate the potential to create positive social value through job creation, transformation, and social and/or environmental impact.
With skilled mechanics and transparent, fixed pricing, Michanic provides clients with reliability, affordability, and convenience. Customers can trust that their vehicles will receive the same high-quality service as traditional car servicing brands, with the added benefit of having it done at their premises. In 2021, the South African Competition Commission introduced the "Right to Repair" guidelines, which allow consumers to have their vehicles serviced at any service provider of their choice, without voiding the manufacturer's warranty. This regulation empowers consumers to select service centres based on convenience and cost, promoting a more competitive and consumer-friendly automotive service market.
“The successful completion of this transaction is a testament to the strength of our business model and our unwavering commitment to creating sustainable impact by empowering mechanics, driving job creation, and enhancing service delivery. We look forward to the growth opportunities this partnership unlocks and the positive impact it will bring to the industry and our communities,” says Dikgale.
This investment will also enable Michanic to extend its service offering to towing, tyre replacements, motor body repairing, auto glass repairs, and a warranties arm of the business – all available to customers on demand through their user-friendly app and website.
“We’re excited to be investing in Michanic as the business has performed well, growing more than 40% year-on-year for the past few years. The platform aims to make mobile car servicing and maintenance as convenient as possible, which we think is a no-brainer to the customer if they’re given a chance to scale throughout the country,” says Raheem Sonday, associate principal at Edge Growth.
Michanic founders Lesetja Dikgale and Thabelo Mulelu.
The Asisa ESD Fund: This B-BBEE investment fund is an SME development solution, created on behalf of The Association for Savings and Investment South Africa, to benefit both investors and SMEs.
- Founded in 2012
- More than R700m assets under management
- Close to R600m committed to SMEs to date
Edge Growth is a leading SME and Venture Fund Manager, specialising in developing small businesses and creating jobs and real transformation by connecting corporates and entrepreneurs, growing SMEs by addressing their key constraints: Access to finance, markets and skills. Its offering consists of three service areas, designed to achieve maximum impact:
- ESD Strategy for corporates and building SMEs in their value chain
- Investing in and growing SMEs through fund management
- Scaling businesses to full potential through accelerator programmes
