Cairo-based used car platform, Sylndr, has successfully raised $15.7 million in funding to broaden its services beyond online vehicle sales into areas such as auto financing, servicing, and tools for dealers. The investment round was spearheaded by Development Partners International’s Nclude Fund, with significant contributions from Algebra Ventures.
Operating within Egypt’s burgeoning yet under-digitised vehicle market, Sylndr’s latest funding round includes both new equity and previously undisclosed seed financing. Over the past year, the company also secured nearly $10 million in debt financing from local banks, bringing its total capital raised since inception to over $30 million, including a $12.6 million pre-seed round in 2022.
Founded in 2021 by Omar El Defrawy and Amr Mazen, former executives from the food delivery and e-commerce sectors, Sylndr began as a platform aiming to simplify the buying and selling of used cars directly from consumers, ensuring properties were refurbished and sold with warranties. The platform has since evolved into a comprehensive mobility service, integrating digital auto loans, car servicing, and a marketplace catering to third-party dealers.
El Defrawy explains that initial efforts were primarily focused on consumer concerns regarding car transactions. As the business scaled, it became evident that a larger market opportunity existed, necessitating the expansion of services to enhance customer value.
The demand for used cars in Egypt has surged, particularly in light of economic shifts like currency devaluation and restrictions on new car imports, which have led to a reliance on domestic vehicles. Presently, used cars outnumber new ones by a ratio of 3:1, with many transactions occurring through unregulated dealerships or classified sites that expose buyers to significant risks.
Sylndr aims to capitalise on the estimated $10 billion market by formalising processes regarding inspections, standardised pricing, digital financing, and securing ownership transfers. The average transaction on their platform falls between $20,000 and $25,000, a price range that has remained steady even as the Egyptian pound’s value has plummeted.
In addition to its core car sales, Sylndr has diversified into three new operational verticals: Sylndr Swift, a digital financing solution offering rapid approvals without on-balance sheet lending; Sylndr Plus, which encompasses inspections and servicing; and Al-Ajans, a marketplace facilitating dealer-to-consumer sales. These services are integrated under one mobile app to streamline experiences for both consumers and dealerships.
Currently, Sylndr engages with over 1,000 dealers and plans to strengthen its footing in the Egyptian market rather than expanding into the Gulf region. CEO El Defrawy views Sylndr as a pivotal player in revolutionising the automotive landscape in Egypt, addressing longstanding barriers related to ownership access, trust, and financing.
Ashley Lewis, Managing Partner at DPI Venture Capital, noted Sylndr’s efforts in creating a digital backbone for the automotive industry, which significantly enhances car buying and selling processes for Egyptians.
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