Egypt’s Sylndr has raised USD 12.6 million from international and regional investors.
Online used-car retailer Sylndr has announced the raising or USD 12.6 million in a pre-seed round led by RAED Ventures, with participation from Algebra Ventures, Global Founders Capital, 1984 Ventures and Nuwa Capital along with a series of regional angel investors.
Sylndr aims to provide users with a safe, simple means by which to sell used cars and to build trust in the used-car market within the region. The company’s goal is to create a marketplace for high quality, affordable vehicles available through a range of financing options.
Sylndr buys used cars from individuals and then later resells them. The company offers a range of services to its users, including staff who will hand over the vehicle to the buyer and a pre-sale inspection service. Sylndr will only buy cars under 10 years old and that have driven under 150,000 km.
Sylndr was founded by Omar El Defrawy and Amr Mazen. “We aim to become the most trusted used cars retailer in the region. Our customers will be able to sell their cars directly in as little as 24 hours, with free collection and fast payment.” El Defrawy, the company’s Chief Executive Officer, said.
A market “ripe for disruption”
Saudi VC firm RAED Ventures is one of the investors. RAED’s Managing Partner Omar Almajdouie, said, “The secondary car market is highly fragmented and more often than not, consumers do not have a trusted counterpart. 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.
The company aims to use the investment to build its operational capabilities, technology infrastructure and brand awareness while building out its team. The company currently employs a team of 40 developers and is aiming to double in headcount by the end of the year.
Laila Hassan, General Partner at Egyptian VC firm Algebra Ventures, said, “We are excited to back the all-star team behind Sylndr as they take on such an opportunity. The competence of the team, coupled with the massive business potential inside Egypt and beyond, forge a solid path to success.”
According to Ken Research, the Egyptian used car market is set to grow steadily thanks to manufacturers building out their used car networks and the fact that millennials require vehicles and are willing to purchased second-hand vehicles.
MENA startups raised USD 297 million in April alone. Saudi Arabia, the UAE and Egypt represented the largest markets. Globally, fintech startups account for the majority of investments.