Sylndr Secures $7.45 Million to Revolutionise Egypt’s Used Car Market

Egyptian e-commerce platform Sylndr has announced a groundbreaking financial milestone, securing a working capital facility worth EGP370 million (US$7.45 million). This asset-backed financing arrangement, the first of its kind in Egypt, is set to redefine how startups in the country scale their operations and attract investment.

Driving Innovation in the Automotive E-Commerce Space

Launched in November 2021 by co-founders Omar El Defrawy and Amr Mazen, Sylndr has established itself as a reliable platform for buying and selling used cars in Egypt. The company’s transparent and customer-centric approach has earned it significant trust in the market. This latest funding, structured by the Investment Banking division of EFG Hermes, builds on Sylndr’s earlier success, including a US$12.6 million pre-seed funding round in May 2022.

The asset-backed financing framework is a bold step forward for Egypt’s financial ecosystem. It gives Sylndr the flexibility to scale its operations, improve its services, and integrate sustainable practices into its business strategy. “This transaction is not only a major milestone for Sylndr but also a benchmark for startups in Egypt,” said Mai Hamdy, executive director of debt capital markets at EFG Hermes.

Pioneering Asset-Backed Financing in Egypt

The facility, provided by EFG Financial Solutions, Next Bank, and the Egyptian Gulf Bank, is tailored to align with Sylndr’s growth ambitions. This innovative financing structure offers a precedent for how emerging businesses in Egypt can access credit while navigating market challenges. It reflects a broader trend in the country’s financial sector, where lenders are beginning to explore creative solutions for supporting startups.

Sylndr plans to channel the funds into expanding its market reach and enhancing operational efficiency. The goal is to create a seamless customer experience by introducing a broader range of financing options for buyers and sellers.

Redefining the Used Car Market

With the used car market in Egypt poised for growth, Sylndr’s efforts aim to modernise the sector and set a new standard for transparency and reliability. Co-founder and CEO Omar El Defrawy expressed optimism about the company’s trajectory, stating, “This funding will allow us to explore new opportunities, maintain our commitment to transparency, and redefine how customers interact with the used car market.”

As Sylndr continues to innovate, it serves as a beacon for other startups in Egypt, demonstrating how a strategic approach to funding can transform a business. With this significant investment, Sylndr is not just driving growth but also leading the way in revolutionising how used cars are bought and sold in the region.