EGYPT – Egypt-based automotive marketplace, which allows customers to sell and buy used cars online, Sylndr has raised US$12.6 million in a pre-seed round to scale its marketplace for used cars.
The latest pre-seed round was led by RAED Ventures, with participation from Algebra Ventures, Nuwa Capital, 1984 Ventures, Global Founders Capital, and a number of notable regional and global angel investors.
The start-up will use the funds to create operational capabilities, technology infrastructure, brand awareness, and a stellar team capable of realizing the company’s mission.
Founded in 2021 by Amr Mazen and Omar El Defrawy Sylndr aims to establish credibility in the used-car industry by enabling users to buy, sell, and finance their vehicles with minimal effort and transparency.
The start-up is proud of its “driving engine;” a strong team of 40+ highly skilled individuals eager to improve the lives of many. The organization intends to more than double the workforce size by the end of the year.
“We aim to become the most trusted used car retailer in the region. Our customers will be able to sell their cars directly in as little as 24 hours, with free collection and fast payment,” said Omar El Defrawy, Sylndr’s CEO.
“Sylndr will be the go-to place for customers seeking affordable cars, featuring an extensive range of high-quality used vehicles accessible through a diverse set of financing solutions.”
Sylndr is not yet available to the general public. It is, however, modeling itself after India’s Cars24, which obtains automobiles from individuals who wish to sell them, buys them for a predetermined price, reconditions them, and then resells them to new owners.
The start-up promises to offer a seven-day money-back guarantee, warranty, and convenient payment alternatives to users, according to the creators.
Sylndr’s plans come at a time when Egypt has 80% of its over 6 million cars on its roads being passenger cars.
Most of them are used cars; their ratio to new vehicles is 3:1. But the used cars market isn’t only enormous in Egypt; it is in almost every country with a large population globally.
News cars in the North African country are pricey; that’s one explanation for the massive demand for used vehicles, especially in emerging markets.
In Egypt, popular brands such as GB Auto, Mansour Automotive, and Nissan are typically known to have good resale value.
But the buying experience of such cars on classifieds can be underwhelming because of several issues such as lack of trust and affordability.
The start-up aims to bridge the gap in financing car purchases in Egypt where only 5% of used cars are financed.
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