Cairo-based startup Sylndr has successfully raised $15.7 million in funding as it embarks on an ambitious expansion beyond online used car sales. The joint venture company is on a mission to transform Egypt’s vehicle market. It aims to do this by embedding auto financing, servicing and dealer tools into its workflows. Sylndr’s move is timely as the local market is growing quickly, albeit still highly under-digitized.
Launched by Omar El Defrawy, Sylndr first started out just providing an online marketplace for secondhand cars. In an attempt to stay ahead of shifting market needs, the company has largely expanded its mission. Sylndr is rolling out complementary services, including digital auto loans and car maintenance. This expansion further cements the company’s role as an all-in-one resource for vehicle buyers and dealers across the region.
Since 2021, the Egyptian vehicle market has faced major blows. This change was made possible when the government banned the import of used cars. This regulation has unnecessarily pushed us to depend further on domestic supply. In the 2022 import tariff, vehicle prices increased in lock step with sudden changes in exchange rates. Currently, used cars in Egypt outnumber new vehicles by a staggering three to one, highlighting a significant opportunity for growth within this sector.
Sylndr runs a dealer-to-consumer marketplace called Al-Ajans, where third-party dealers can list their cars for sale. The platform automatically manages key workflows including inspection and ownership change. It manages payment transactions, ensuring that any buying experience is seamless and pleasurable for everyday consumers. This unique integration helps simplify the car-buying experience for buyers while improving efficiency in day-to-day operations for dealers.
Now, with the launch of Sylndr Plus, the company appears to have taken its expansion even further. To give its drivers peace of mind, Vroom has implemented a 150-point inspection, maintenance and servicing on cars sold through their platform. Sylndr anticipates the new financing and servicing verticals will account for at least 60% of its gross profit. They expect this transition to be completed in the next two years.
Omar El Defrawy, Principal at Energy Impact Partners, who underscored the comprehensive approach that Sylndr is taking to meet the needs of the market.
“We’ve fully integrated these services to help customers buy, sell, finance, rent, and service their cars—and to help dealers operate more efficiently and go digital.” – Omar El Defrawy
While this statement seems pretty simple, it speaks to the startup’s priority of making every transaction easier for everyone with an interest. Sylndr’s sales numbers are indicative of this trend, having recently skyrocketed almost tenfold from 2022. Revenue in Egyptian pounds surged more than 22 times over the same span of time. When you account for inflation measured in U.S. dollars, it went up five times.
With more than 6 million vehicles on the road, Egypt’s car fleet is growing. The demand for used cars is increasing because of the continuing process of currency devaluation and increasing costs for new imports. Sylndr has rapidly tapped into this need. In return, they have digitized their consumer experience and now provide financing approvals in less than ten minutes, giving consumers much quicker access to credit.
Ashley Lewis, one of the significant players in the investment community, had faith in Sylndr’s model.
“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.” – Ashley Lewis
Sylndr is still expanding and adjusting to an Egyptian automobile market that is undergoing rapid transformation. Its unprecedented solutions will undoubtedly have a permanent and positive effect on consumers and dealers for many years to come. By addressing longstanding barriers to ownership and introducing effective digital tools, the company is paving the way for a more efficient and accessible vehicle market.
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