Sylndr Secures $15.7M to Revolutionize Egypt’s Used Car Market with Comprehensive Platform

Cairo-based Sylndr has successfully raised $15.7 million in funding to expand its operations beyond online used car sales, venturing into auto financing, servicing, and providing tools for dealers in Egypt. The funding round was led by Development Partners International’s Nclude Fund. This investment underscores Sylndr’s commitment to digitizing and streamlining the used car market in Egypt, a sector ripe for innovation (Sylndr).

The latest funding round includes both new equity and previously unannounced seed financing, reflecting strong investor confidence in Sylndr’s vision and business model. Over the past year, Sylndr also secured nearly $10 million in debt financing from local banks, bringing its total funding since launch to over $30 million. Sylndr previously raised a $12.6 million pre-seed round in 2022, which was the largest of its kind in Africa (TechCrunch).

Founded in 2021 by Omar El Defrawy, formerly an executive at Elmenus, Sylndr initially focused on directly purchasing used cars from consumers, refurbishing them, and reselling them with warranties and money-back guarantees. The company has since evolved into a comprehensive mobility platform, offering digital auto loans, car servicing, and a marketplace for third-party dealers (Omar El Defrawy LinkedIn).

“When we started the business, we were primarily focused on a consumer problem related to buying and selling cars,” said El Defrawy in an interview with TechCrunch. “And when we started to scale that business, it became very clear to us that the market is much bigger than that, and creating value to customers would require us to build other compelling businesses that integrate with what we’re doing.”

Egypt’s used car market is substantial, with over 6 million cars on the road. Demand is growing due to currency devaluation and rising prices for new imports. A 2021 government ban on used car imports has further increased reliance on domestic inventory, pushing prices up in line with exchange rates. Sylndr aims to address the inefficiencies in this market, where transactions are often informal and carry significant risk for buyers.

Sylndr estimates the used car market in Egypt to be worth $10 billion and seeks to formalize processes by offering inspections, standardized pricing, digital financing, and secure ownership transfers. The average sale price on Sylndr’s platform ranges from $20,000 to $25,000. El Defrawy noted that this price has remained stable in dollar terms despite the Egyptian pound’s devaluation, as used car prices are often pegged to the dollar, similar to imported new cars.

The company has experienced significant growth, with sales increasing nearly tenfold since 2022. Revenue in Egyptian pounds increased 22 times during the same period, and by a factor of five when adjusted for the dollar. This growth has been fueled by Sylndr’s expansion into new verticals, including Sylndr Swift for digital automotive financing, Sylndr Plus for car servicing and maintenance, and Al-Ajans, a dealer-to-consumer marketplace.

Sylndr Swift provides financing approvals in under 10 minutes, connecting buyers with banks and underwriters without Sylndr lending from its own balance sheet. Sylndr Plus offers inspections, maintenance, and servicing for cars sold on the platform, while Al-Ajans allows third-party dealers to list and sell cars with Sylndr managing inspection, ownership transfer, and payments.

These services are integrated into a single mobile app, creating a one-stop shop for buying, financing, and managing car ownership. Sylndr’s revenue is now evenly split between direct-to-consumer sales and B2B transactions with dealers. The company anticipates that the newer financing and servicing verticals will contribute up to 60% of gross profit within two years.

Currently, Sylndr collaborates with over 1,000 dealers nationwide, serving both buyers and sellers through online and offline channels. While competitors such as Contactcars, OLX, and Autochek offer similar services, El Defrawy believes that Sylndr’s end-to-end solution across the value chain sets it apart, creating a difficult-to-replicate infrastructure of inspection, refurbishment, and bank partnerships.

Unlike other startups in Egypt that expand to the Gulf, Sylndr intends to deepen its presence in its home market. “Sylndr is building the digital backbone of mobility in a market where access, trust, and financing have long been barriers to ownership. Their integrated model brings together commerce, credit, and technology to fundamentally improve how Egyptians buy and sell cars,” said Ashley Lewis, Managing Partner at DPI Venture Capital.

This investment marks the third deal announced by DPI Venture Capital in the past month, following investments in MoneyFellows and Nawy (Nawy). Other participating VC firms include Algebra Ventures, Nuwa Capital, Raed Ventures, Egyptian Gulf Holding, Uncovered Fund, Beltone Venture Capital, and Camel Ventures.