Sylndr, a Cairo-based online marketplace for used cars, has raised $12.6 million in a pre-seed investment round led by RAED Ventures.
The funding was also participated by Algebra Ventures, Nuwa Capital, 1984 Ventures, Global Founders Capital and other regional and global angel investors.
Founded in November 2021, Sylndr provides an online platform where customers can sell and buy used cars without going through traditional dealers.
The new capital will be used to build the company’s operational capabilities, technology, brand awareness and also double the size of its current 40-individual team by the end of the year, according to a company statement released on Monday.
The company follows a business model of buying used cars and reselling them after refurbishment to both wholesalers and consumers through a reliable and transparent process, according to Omar El Defrawy, CEO and co-founder.
“We are not reinventing the wheel. This business model exists in both the developed and developing worlds and it has already proven its success,” Defrawy told Zawya in a phone interview.
“Estimates show that around 750,000 used cars are sold every year in Egypt, which leaves us with a secondary market worth $10 billion. Hence, the market is full of opportunities,” added Defrawy, a former CFO of Elmenus.
The used car market may also benefit from the ongoing turmoil in the new vehicle market, he said.
Egypt’s unused car market has been in limbo for nearly two years, with the pandemic disrupting global supply chains and causing a chip shortage. The situation has worsened as the devaluation of the Egyptian pound in March led to a 15 percent to 20 percent price increase in brand-new cars, making them less affordable for most Egyptians.
Defrawy said that his company is already partnering with different types of financiers including banks and BNPL businesses to provide finance to low-income buyers of used cars.
The company’s ultimate goal is to expand its footprint in other parts of the region in less than two years, according to Dafwary.
(Reporting by Noha El Hennawy; editing by Cleofe Maceda)