Autolab Secures USD $4.1M in Funding to Expand Operations in Colombia and Mexico
Autolab aims to accelerate the standardization and automation of car service facilities in Colombia and Mexico, targeting a tenfold growth by 2024.
Autolab, a trailblazer providing management software to car service facilities, has successfully raised USD $4.1 million in a funding round. Vertical Venture Partners and Haven Ventures led the round, which also saw participation from Interplay, Bullpen Capital, Proeza Ventures, and Polymath Ventures.
Founded in 2014 by Salvador Zepeda, Autolab seeks to bring transparency, standardization, and convenience to an industry often viewed as informal and untrustworthy. The company’s software links car service facilities with diverse clients, from corporate fleets to individual vehicle owners.
Salvador Zepeda, the CEO of Autolab said:
“This funding will enable us to offer our software to a broader range of auto shops in Colombia and Mexico. Our software helps these shops standardize operations, automate customer service, and efficiently plan their workload”.
Autolab already operates a network of more than 150 repair shops that serve over 70 vehicle fleets. With the new funds, the company plans to grow tenfold by December 2024, targeting 480 fleet clients. The expansion aims to improve the efficiency and reliability of car service facilities in more than 20 cities in Colombia and Mexico.
Among its client portfolio are companies such as Enterprise, National, and Alamo. This funding round marks a significant milestone for Autolab as it strives to revolutionize the car service industry in Colombia and Mexico through its innovative software solutions.
Mexican Auto Parts Industry
Mexico continues strengthening its position as one of the world’s leading auto parts manufacturers, ranking fourth globally. It surpassed Germany in 2021 and now trails only China, the United States, and Japan. By the end of 2023, the value of auto parts production in Mexico is expected to reach nearly USD $109,000 million, primarily driven by exports.
The United States is the largest investor in Mexico, accounting for 78% of total investments, followed by Japan with 10% and South Korea with 3%. Foreign direct investment in auto parts reached USD $1.376 billion in 2022.
From 1999 to 2022, there was a cumulative investment of USD $49,772 million in the auto parts sector, mainly from the United States, Japan, Germany, Canada, Spain, France, Italy, and South Korea.
The National Auto Parts Industry (INA) predicts that by the end of 2023, the sector will set a new employment record, with an estimated 891,000 employees. This would surpass the previous record set in 2018 of approximately 886,000 workers. Highly skilled human capital is one of Mexico’s strategic advantages, with around 124,000 engineering and technical graduates in 2021 and 2022 alone, representing 15% of all graduates in the country.
Autolab’s successful funding round marks a pivotal moment in its journey to transform the car service industry in Colombia and Mexico. The new capital infusion will accelerate the company’s ambitious plans for expansion, standardization, and the incorporation of cutting-edge technology. As the auto parts sector in Mexico continues to grow, spurred by high levels of foreign investment and a highly skilled workforce, companies like Autolab are well-positioned to capitalize on this upward trend and bring meaningful change to the industry.