Egypt’s automotive tech scene is heating up, and Cairo-based startup Sylndr is leading the charge. The company recently raised $15.7 million in Series A funding, a significant milestone that brings its total capital to over $30 million since its launch in 2021.

This fresh injection of funds, led by US-based Prosus Ventures alongside DPI’s Nclude Fund and Partech, signals strong investor confidence in Sylndr’s mission to transform Egypt’s fragmented used-car market. This follows Sylndr’s impressive fundraising history:

• In 2022, Sylndr raised Africa’s largest pre-seed round of $12.6 million.
• The company also secured $10 million in debt financing from local banks over the past year.

With this new funding, Sylndr’s total capital raised now exceeds $30 million. The funds will be used to:

1. Expand inventory of certified used vehicles.
2. Upgrade tech infrastructure to enhance user experience.
3. Accelerate customer acquisition through nationwide marketing campaigns.
4. Strengthen new verticals like financing and servicing.

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What is Sylndr? A Digital Solution for Egypt’s Used Car Market

Founded in 2021 by Omar El Defrawy and Amr Mazen, Sylndr is a fully digital marketplace designed to simplify the process of buying and selling used cars in Egypt.

What started as a resale platform has evolved into a full-stack digital mobility player, offering a one-stop shop for car buyers and sellers. Sylndr’s services now include:

1. Certified used car sales with warranties
2. Vehicle financing through partnerships with local banks
3. Inspection and servicing via its Sylndr Plus vertical
4. Dealer-to-consumer marketplace called Al-Ajans

Sylndr’s core business involves buying, refurbishing, and selling used cars, with an average sale value between $20,000 and $25,000.

Despite Egypt’s economic challenges, including steep currency depreciation, Sylndr maintains dollar-stable pricing, making it a reliable option for consumers in a volatile market.

Tackling Egypt’s Used Car Market Challenges

Egypt’s used car market, valued at an estimated $10 billion, has long been characterised by inefficiencies.

Sylndr addresses these pain points by offering a seamless, transparent experience. Its platform allows users to browse certified used cars online, secure instant auto loan pre-approvals, and schedule maintenance, all through a single mobile app.

This integrated approach sets Sylndr apart from traditional dealers and informal sales channels, positioning it as a modern alternative in a rapidly growing market.

Why Egypt’s Used Car Market is Booming

Egypt’s economic landscape has created a perfect storm for the used car market. Rising prices of new cars, along with government restrictions on imports and foreign exchange constraints, have made pre-owned vehicles a more attractive option for middle-income earners.

At the same time, the demand for affordable transportation has surged amid economic struggles.

Sylndr has capitalised on this trend, reporting remarkable growth since 2022:

• Revenue growth of 22x in local currency.
• Revenue growth of 5x in USD terms.

This growth is driven by Sylndr’s product diversification and platform integration, which cater to the evolving needs of Egyptian consumers.

By offering a modern alternative to traditional players like OLX, Contactcars, and Autochek’s AutoTager, Sylndr is formalising a sector where trust and transparency have historically been scarce.

Sylndr’s Expansion Plans: New Verticals and Services

With the fresh capital, Sylndr is doubling down on its vision to become Egypt’s digital mobility backbone. The company has introduced three new verticals, each operating as a standalone brand but integrated through its mobile app:

1. Sylndr Swift: A digital auto loan marketplace that partners with banks to offer instant pre-approvals for financing.
2. Sylndr Plus: Focused on vehicle inspections and servicing, ensuring buyers receive high-quality, reliable cars.
3. Al-Ajans: A dealer-to-consumer marketplace that connects over 1,000 dealers nationwide with buyers.

Sylndr expects financing and servicing to account for 60% of its gross profit within the next two years, highlighting the strategic importance of these new offerings.

Addressing Limited Access to Credit

One of Sylndr’s standout features is its ability to provide instant auto loan pre-approvals without lending from its own balance sheet.

By partnering with local banks, Sylndr ensures that buyers have access to affordable credit, a critical need in a market where financing options are limited.

This approach not only empowers consumers but also drives sales volume, further solidifying Sylndr’s position as the leading used car trading company in Egypt by both volume and value.

Competing in a Crowded Market

Egypt’s automotive tech space is becoming increasingly competitive, with players like Moove and Autocheck also vying for a share of the market.

However, Sylndr’s comprehensive model sets it apart. Unlike competitors that primarily focus on matching buyers and sellers, Sylndr addresses multiple friction points in the used-car transaction cycle:

1. Inspection and refurbishment: Ensuring vehicles meet high-quality standards.
2. Integrated financing: Making car ownership more accessible.
3. Servicing and maintenance: Providing ongoing support for buyers.

This holistic approach positions Sylndr as a leader in Egypt’s digital mobility landscape, with the potential to influence how other African markets reimagine car ownership and resale in a digital-first era.

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The Road Ahead for Sylndr

Sylndr’s co-founder, Omar El Defrawy, a former investment banker, has ambitious plans for the company. While Sylndr is currently focused on dominating the Egyptian market, its success could serve as a blueprint for other African countries. For now, the company is prioritizing:

1. Brand growth: Expanding its presence through targeted marketing campaigns.
2. Tech innovation: Enhancing its platform to deliver a seamless user experience.
3. Market leadership: Maintaining its position as Egypt’s top used car trading platform.

With revenue now split evenly between B2C and B2B channels, Sylndr is well-positioned for long-term success in a complex but high-growth market.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.