Sylnd, based in Cairo, has raised $ 15.7 million as it expands beyond the sales of used online cars in car financing, services and tools for dealers. The round was directed by the NCLUDE DEVELOPE INTERNATIONAL FUND AND INCLUDED INVESTMENT INVESTMENTS OF ALGEBRA VENTURES AND NCLUDE.
The company, which operates in the fast -growing vehicle market but not very digitized from Egypt, said the last round includes fresh capital and the fine of seeds prevently without prior notice.
Sylnddr also raised almost $ 10 million in financing of the debt of local banks in the last year, which raised its total to more than $ 30 million. Sylnd raised a round prior to sten $ 12.6 million in 2022.
Omar the Defowy and AMR Mazen, former executives of the new local food delivery and electronic commerce companies, founded the car platform used in 2021 and focused initially on buying used consumers, renewing theme and reselling.
Since then, it has become a broader mobility platform, which offers digital cars loans, car service and a market for third -party distributors.
“When we started the business, we were mainly focused on a consumer problem related to the purchase and sale of cars,” said the co -founder and CEO Omar the Defrawy in an interview with TechCrunch. “And when we started climbing that business, it was very clear that the market is much larger than that, and creating value for customs would require replacing ourselves to build businesses that are integrated with what we are doing.”
Egypt has more than 6 million cars on the road, with a demand for used cars that grow in the middle of the devaluation of the currency and the increase in prices for new imports. In 2021, the Government prohibited used imports of uses, forcing the market to completely trust the national inventory, promoting prices to reflect the exchange rate.
As a result, cars used in Egypt, while exceeding new vehicles by 3: 1, are sold mainly through unregulated concessionaire chalk or classified websites, where informal transactions leave buyers who carry most of the risk.
Sylnd sees the opportunity in that disaster, which estimates as a market of $ 10 billion by formalizing processes around inspections, standardized prices, digital financing and safe property transfers.
The average sale price on the Sylnd platform is between $ 20,000 and $ 25,000, said the fraowy. He explained that the number has remained stable in terms of dollars in the last three years, despite the fact that the Egyptian pound lost more than half of its value. This is because the prices of cars used in Egypt are marketed in a similar way to new imported cars, which are given.
Sylnd refused to share the income or volume of transactions, but said that sales have increased almost ten times since 2022. Revenue in Egyptian pounds increased 22 times that period, and by a dollar factor, whom Dollauns, who Dolla Discovery Elmenus, said.
Digitizing the car market of Egypt
Sylnd’s expansion beyond car sales to three new verticals is to reduce its dependence and capital dependence.
Is Sylnddr Swift, a digital automotive financing product that connects buyers with banks and subscribers. The platform provides fines approval in less than 10 minutes, according to the defrawy. Sylnddr does not lend since his own general balance, he added.
In addition to Swift, Sylndrd recently introduced Sylnd Plus, which sacrifices the inspections, maintenance and service of the ONS platform sold. The third vertical, Al-Ajans, is a consumer concessionaire market that allows third-party distributors to list and sell cars with Sylnd Management inspection, property transfer and payments.
Each vertical is executed under their own brand, but Sylnd has integrated them all into a single mobile application that creates a unique advantage to buy, finance and manage the property of the car. “We have completely integrated these services to help customers buy, sell, rent, rent and attend their cars, and to help dealers to operate more efficiently and be digital,” said Defrawy, who is a former investment banker.
The company’s income is now divided evenly between direct sales to the consumer and B2B transactions with the dealers, he added. However, waiting for new finances and vertical service to contribute up to 60% of gross profits in two years.
Sylnddr currently works with more than 1,000 distributors throughout the country and serves both buyers and sellers through their online and offline channels. While other regional actors such as Contactcars, Autochek based in OLX and Nigeria, who made incursions in Egypt with Autotager in 2023, have similar offers, the Defrawy says they do not see them as a close competition in terms of providing an end -to -end solution for buyers and dealers throughout the value chain.
The inspection, renewal and banking associations of Sylnd makes it difficult for external players to replicate their model, he says.
As such, unlike new companies in Egypt that have traditionally used their local market as a springboard for the Gulf, Sylnd plans to deepen its presence in Egypt, where CEO affirms that it is “the largest car commerce company by volume and value.”
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This marks the third agreement announced by the recent VC headquarters in London in the last month, after investments on the digital savings and credit platform of Egypt, Moneyfellows and the Startup of Proptech Nawy.
