Sylndr, an Egyptian used automobile marketplace, has raised $12.6 million in a pre-seed round led by RAED Ventures, with participation from Algebra Ventures, Nuwa Capital, 1984 Ventures, Global Founders Capital, and various regional and global angel investors.
This is the region’s and Sub-Saharan Africa’s highest investment in the sector. Sylndr will use the funds to expand its operational capability and technology infrastructure, increase inventory, hire additional personnel, and expand its retail and non-retail client channels.
Explaining the gap that the startup hopes to fill, the CEO and co-founder of Sylndr, Omar El Defrawy said, “The main problem that we’re trying to fix in Egypt is a complete mistrust between buyers and sellers of used cars in the markets. That’s the core problem that we’re trying to solve. Our vision as a company is that we want to quickly become the most trusted used car retailer in Egypt and the region.”
Sylndr was founded in 2021 by El Defrawy and Amr Mazen. Although the automobile marketplace is not yet available to the general public, it works by collecting cars from people who wish to sell them, purchasing them for a predetermined price, reconditioning them, and then reselling them to new owners. Sylndr also wants to offer a seven-day money-back guarantee, a warranty, and flexible financing alternatives, according to the CEO.
Because of the country’s affordability and lack of automobile finance options, used cars are the next best thing for the typical Egyptian.
“So imagine if you enable financing and make the cars much more affordable to people, that’s a core value proposition we want to ship as well,” El Defrawy added.
Mazen said Sylndr plans to open up to buyers within this year’s Q4 and Q1 2023, where it first updates its car listings by launching to customers who want to sell their cars on its platform.
Retail sales, auction houses, dealerships, and B2B sales will all contribute to the startup’s revenue. Sylndr will also look into additional revenue streams including financing interest, insurance, roadside assistance fees, and other value-added services, according to El Defrawy. “We’re seeking to develop that as we go.”
“The secondary car market is tremendously fragmented, and more often than not, consumers do not have a trusted counterpart,” stated Omar A. Almajdouie, Managing Partner of RAED Ventures.
“The market is massive, ripe for disruption, and we’re excited to be part of Sylndr’s journey as they transform and set an entirely new standard for the used car market. Given the unique background and experience of this team, we believe in their ability to crack this business model,” he added.