Located in Cairo Notification Has collected $ 15.7 million as it goes beyond the sale of online used cars to car financing, service and tools for dealers. De Ronde was led by the NCLude Fund of Development Partners International and included follow -up investments of Algegebra Ventures and NCLude.
The company, which is active in the fast -growing but subdivided vehicle market of Egypt, said that the final round includes both fresh equity and previously unannounced seed financing.
In the past year, Sylndrd also collected almost $ 10 million in debt financing from local banks, which has increased the total since the launch has increased to more than $ 30 million. Sylndrd collected a pre-seed round of $ 12.6 million in 2022.
Omar de Defrawy And Amr MazenFormer managers at local food delivery and e-commerce startups, founded the Auto Platform used in 2021 and initially set up on buying used cars directly from consumers, refurbishments and resale with a guarantee and money-back guarantee.
Since then it has evolved into a wider mobility platform, which offers digital car loans, car service and a marketplace for external dealers.
“When we started the company, we were mainly focused on a consumer problem with regard to buying and selling cars,” said co-founder and CEO Omar El Defrawy in an interview with Techcrunch. “And when we started scaling up that company, it became very clear to us that the market is much greater than that, and creating value for customers would require us to build other compelling companies that integrate with what we do.”
Egypt has more than 6 million cars on the road, where the demand for used cars is growing in the midst of currency devaluation and rising prices for new input. In 2021, the government prohibited the import of used cars, which forced the market to fully rely on domestic inventory, which stimulates prices to reflect the exchange rate.
As a result, used cars in Egypt, while they exceed new vehicles against 3: 1, mainly sold via non -regulated dealers or classified websites, where informal transactions leave buyers that bear most of the risk.
Sylndrd sees the chance in that mess, which estimates it as a $ 10 billion market by formalizing processes on inspections, standardized prices, digital financing and securing ownership transfers.
The average selling price on the Sylndrdr platform is between $ 20,000 and $ 25,000, said El Defrawy. He explained that the number has remained stable in dollars in the last three years, despite the fact that the Egyptian pound lost more than half of its value. This is because the prices for used cars in Egypt are marketed in the same way as imported new cars, which are dollar-pegged
Sylnddr refused to share income or transaction volume, but said that the turnover has risen almost ten times since 2022. Turnover in Egyptian pounds increased 22 times in that period, and with a factor of five when adapted for the dollar, the CEO, which previously led financing activities at Food Discovery Elmenus,.
Digitization of the Egypt car market
The expansion of Sylndr that goes beyond the sale of car -running to three new verticals is the reduction of dependence on inventory and capital.
There is Sylndr Swift, a digital production finance product that connects buyers with banks and insurers. The platform offers financing goods inspections in less than 10 minutes, according to El Defrawy. Sylnddr does not borrow from his own balance, he added.
In addition to Swift, SILNDR recently introduced Sylndr Plus, which offers inspections, maintenance and maintenance for cars that are sold on its platform. The third vertical, Al-Ajans, is a market for dealer-to-consumers with which external dealers can state and sell with SILndD inspection, transfer of ownership and payments.
Each vertical runs under its own brand name, but Sylndr has all integrated them in a single mobile app creating a one-stop shop for buying, financing and managing car ownership. “We have fully integrated these services to help customers buy, sell, finance, rent out and serve their cars – and to help dealers to operate more efficiently and to go digitally,” said El Defrawy, who is a former investment banker.
The turnover of the company is now evenly divided between the sale of directly to consumers and B2B transactions with dealers, he added. However, he expects the newer financing and maintenance to contribute to 60% of gross profit within two years.
Sylnddr is currently working with more than 1,000 dealers nationwide and serves both buyers and sellers through its online and offline channels. While other regional players such as contactcars, OLX and Nigeria, which were moved to Egypt in 2023, are comparable in 2023, are similar in 2023, says El Defrawy that he does not see them as close competition in offering an end-to-end solution for buyers and dealers in the value chain.
The infrastructure of Sylndr of inspection, renovation and banking partnerships makes it difficult for external players to replicate his model, he says.
As such, unlike other startups in Egypt who traditionally used their home market as a springboard to the Golf, Sylndr is planning to deepen his presence in Egypt, where the CEO claims that it is “the largest used car -trading company per volume and value”.
“Sylnddr is building the digital backbone of mobility in a market where access, trust and financing have long been barriers for ownership. Their integrated model brings trade, credit and technology together to fundamentally improve how Egyptians buy and sell cars,” said Ashley Lewis, managing partner at DPI risk capital.
This marks the third deal that has announced the recently launched VC company in London in the past month, after investments in the digital savings of Egypt and credit platform MoneyFellows and Proptech Startup Nawy.
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