Egypt-based start-up Sylndr recently raised USD 15.7 million, to expand beyond online used car sales into auto financing, servicing, and tools for dealers. The company, which operates in the MENA (Middle East and North Africa) country’s fast-growing but underdigitized vehicle market, saw a productive funding round, as it raised both fresh equity and previously unannounced seed financing.
The venture also raised nearly USD 10 million in debt financing from local banks in 2024, bringing its total raised since launch to over USD 30 million. The company also raised a USD 12.6 million pre-seed round in 2022, the largest of its kind in Africa.
In today’s episode of the “Start-up of the Week,” International Finance will talk in detail about the company.
Digitising Egypt’s Car Market
Omar El Defrawy, a former executive at a local food discovery platform, Elmenus, founded the used-car platform in 2021 and initially focused on buying used cars directly from consumers, refurbishing them, and reselling them with a warranty and money-back guarantee. Since then, the venture has evolved into a broader mobility platform, offering digital auto loans, car servicing, and a marketplace for third-party dealers.
While Egypt has over six million cars on the road, demand for used cars is growing amid currency devaluation and rising prices for new imports. In 2021, the government banned used-car imports, forcing the market to rely entirely on domestic inventory, driving prices to mirror the exchange rate.
Due to this, used cars in Egypt, while outnumbering new vehicles by 3:1, are primarily sold through unregulated dealerships or classified websites, where informal transactions leave buyers carrying most of the risk.
El Defrawy saw the opportunity to formalise processes in the country’s used car market, especially around activities like inspections, standardised pricing, digital financing, and securing ownership transfers. And the outcome was the inception of Sylndr.
As per the CEO, sales on the platform have increased nearly tenfold since 2022. Revenue in Egyptian pounds increased 22 times during that period, and by a factor of five when adjusted for the dollar.
The average sale price on Sylndr’s platform currently stands between USD 20,000 and 25,000. Another astounding fact is that sales figures have remained stable in dollar terms over the last three years, despite the Egyptian pound losing more than half its value. However, one should remember the fact that used-car prices in Egypt are marketed similarly to imported new cars, which are dollar-pegged.
Sylndr has expanded beyond car sales to three new verticals, to reduce its dependence on inventory and capital. We have Sylndr Swift, a digital automotive financing product that connects buyers with banks and underwriters. The platform provides financing approvals in under 10 minutes, while avoiding the scenario of lending from its balance sheet.
The start-up has also introduced Sylndr Plus, which offers inspections, maintenance, and servicing for cars sold on its platform. The third vertical, Al-Ajans, is a dealer-to-consumer marketplace that allows third-party dealers to list and sell cars with Sylndr handling inspection, ownership transfer, and payments.
Entering Sylndr’s Ecosystem
While Sylndr’s verticals run under its brand name, the start-up has integrated them all into a single mobile app, creating a one-stop shop for buying, financing, and managing car ownership.
According to El Defrawy, the company’s revenue gets evenly split between direct-to-consumer sales and B2B transactions with dealers. However, he expects that the newer financing and servicing verticals will contribute up to 60% of gross profit within two years. The start-up is working with more than 1,000 dealers across the Kingdom and serves both buyers and sellers through its online and offline channels.
Unlike other start-ups in Egypt that have traditionally used their home market as a launchpad for their eventual Gulf expansion, Sylndr plans to deepen its presence in Egypt, to consolidate itself as “the biggest used car trading company by volume and value.”
When it comes to selling used cars online, the start-up covers famous brands like Kia, BMW, Ford, Opel, Skoda, Renault, Volkswagen, Hyundai, and Peugeot, while offering attractive features like a 90-day comprehensive warranty, a vehicle return policy of up to seven days, and most importantly, making sure that the certified pre-owned vehicles undergo a rigorous 200-point inspection before being offered for sale.
If an Egyptian national wants to sell his or her car, all the person needs to do is contact “Sylndr Hub,” following which the entity will fill in the seller’s details and call the person within two hours to schedule the inspection. After the inspection is over, the seller then gets a selling offer within 24 hours.
To complete things, the individual performs minimal paperwork and gets the payment on the spot. However, the start-up prefers cars being manufactured from 2010 to date. The vehicle also needs to undergo mileage up to 180,000 kilometres and must be legally registered.
Sylndr Hub is right now not dealing with hybrid, electric, or natural gas-powered cars. To keep things flexible, the start-up also gives the option to the sellers to walk away from the selling deal if he or she changes mind at the last moment. In that case, the venture will still go ahead with the inspection.
In case the seller is transferring the vehicle’s ownership, despite having a loan or outstanding finance, Sylndr will pay the person 50% of the car price upfront, while the remaining will be paid in full after the car’s photo and other details are uploaded on the start-up’s website.
Buyers get to view a car using the start-up’s 360-degree digital photography, which allows the person to see the car and inspect it from every angle, inside and out. The buyer will be able to see the car’s condition, key features, and any imperfections.
Under the “Drive Now, Pay Later” model, Sylndr also provides car buyers with a “Suitable Payment Plan” using the start-up’s flexible “Loan Calculator,” with features like the lowest down payment, a seamless loan approval process, special loan conditions, attractive EMIs, and a flexible tenor.
Sylndr has partnered with several financing institutions to provide its customers with flexible financing options. The buyer will also be able to calculate his or her expected monthly instalments online, depending on the preferred tenor, down payment, and choice of a plan type (with a car sale ban or without a car sale ban). Once the applicant completes the online application, Sylndr’s team processes the application with the financing institutions, while keeping the applicant in the loop.
The buyers can finance up to 90% of their selected Sylndr Certified car, depending on the loan eligibility determined by the start-up’s financing partners. If the customer is not 100% satisfied with his or her vehicle purchase, the vehicle can still be returned under the seven-day money-back guarantee even when financed. The start-up will provide a 100% refund.
Image Credits:Sylndr