Sylndr Secures $15.7 Million in Funding to Broaden Auto Financing and Services in Egypt
Cairo-based automotive platform Sylndr has successfully raised $15.7 million to enhance its operations, expanding beyond online used car sales into auto financing, servicing, and dealer tools. This funding round was led by Development Partners International’s Nclude Fund.
A Growing Presence in Egypt’s Vehicle Market
Operating within Egypt’s rapidly evolving yet under-digitized vehicle landscape, Sylndr’s recent funding includes both new equity and a previously undisclosed seed round. Over the past year, the company also secured nearly $10 million in debt financing from local banks, pushing its total capital raised since its inception to over $30 million. Notably, Sylndr previously attracted attention with a record-setting pre-seed fund of $12.6 million in 2022, the largest of its kind in Africa.
Shifting Business Model
Founded in 2021 by Omar El Defrawy, who formerly worked as an executive at food discovery platform Elmenus, Sylndr initially centered its operations on directly purchasing used cars from consumers, refurbishing them, and reselling them with warranties and money-back guarantees. However, as the business expanded, it became evident that the market demand was broader, necessitating the introduction of new services that would enhance customer value.
"We started primarily focused on addressing issues related to car buying and selling," El Defrawy explained in a recent interview with TechCrunch. "As we scaled, we recognized that the market’s potential extends far beyond that, compelling us to develop additional services."
Insights into Egypt’s Used Car Market
Egypt boasts over 6 million vehicles on its roads, with a notable increase in demand for used cars due to currency devaluation and escalating costs for new imports. The 2021 government ban on used car imports has further intensified reliance on domestic inventory, resulting in used car prices that reflect the prevailing exchange rate.
In this context, used cars—outnumbering new vehicles by a ratio of 3:1—are primarily sold through unregulated dealerships and classified websites, posing risks to consumers involved in informal transactions.
Sylndr perceives a significant opportunity within this sector, estimating the market’s value at $10 billion. The company aims to formalize operations through standardized pricing, digital financing solutions, and secure ownership transfers.
Expanding Service Offerings
With an average sale price of $20,000 to $25,000 on its platform, Sylndr has maintained price stability in dollar terms over the past three years, even amidst a substantial depreciation of the Egyptian pound. This is attributed to the marketing strategy that positions used car prices comparably to dollar-pegged new imports.
While Sylndr has opted not to disclose specific revenue figures or transaction volumes, it reports a nearly tenfold increase in sales since 2022, with revenue in Egyptian pounds surging by 22 times during this period and fivefold in dollar terms.
To reduce its reliance on inventory, Sylndr has introduced three new verticals:
Sylndr Swift: Digital Auto Financing
Sylndr Swift connects car buyers with banks and lenders, providing financing approvals in under ten minutes without lending from its own balance sheet.
Sylndr Plus: Comprehensive Car Services
This service offers inspections, maintenance, and servicing for vehicles sold via its platform.
Al-Ajans: Dealer-to-Consumer Marketplace
This vertical enables third-party dealers to list and sell cars, with Sylndr facilitating inspections, ownership transfers, and payment processing.
Each service operates under distinct brand names but is integrated into a unified mobile app, offering a consolidated solution for purchasing, financing, and managing vehicle ownership.
Competitive Landscape and Future Plans
Sylndr’s revenue is currently balanced between direct consumer sales and B2B transactions with dealers. El Defrawy anticipates that financing and servicing will contribute up to 60% of gross profit within the next two years.
Currently collaborating with over 1,000 dealers across Egypt, Sylndr embraces both online and offline sales channels. Despite competition from regional players such as Contactcars, OLX, and Nigeria’s Autochek, El Defrawy asserts that Sylndr’s end-to-end solution differentiates it in the marketplace. The company’s solid infrastructure involving inspections and partnerships makes duplication challenging for competitors.
Contrary to other Egyptian startups that frequently pivot to Gulf markets, Sylndr is committed to deepening its footprint in Egypt, asserting its position as the largest used car trading entity by both volume and value.
"Sylndr is fundamentally reshaping the digital landscape of mobility in Egypt, where access, trust, and financing have historically been obstacles to ownership," remarked Ashley Lewis, Managing Partner at DPI Venture Capital. "Their integrated approach combines commerce, credit, and technology to enhance the car buying and selling experience for Egyptians."
This funding round signifies the third investment by DPI in the past month, following contributions to Egypt’s digital savings platform MoneyFellows and proptech startup Nawy. Other venture capital firms, including Algebra Ventures, Nuwa Capital, and Raed Ventures, also participated in this funding initiative.
