- Sylndr raised $7.5 million in a first-of-its-kind, asset-backed capital facility tailored to its business model.
- The funding will enhance customer experiences, increase inventory diversity, and broaden financing options.
- This milestone positions Sylndr as a leader in Egypt’s rapidly evolving used car market.
Egypt’s leading online marketplace for used cars, Sylndr, has taken a significant step forward by securing a $7.5 million capital facility. This financial boost, tailored by EFG Hermes and supported by key lenders like EFG Corp-Solutions, Bank NXT, and EG Bank, is a testament to Sylndr’s growing influence and potential in Egypt’s automotive sector.
A Tailored Financial Solution
Founded in 2021 by Amr Mazen and Omar El Defrawy, Sylndr offers an innovative platform for buying, selling, and financing used vehicles. The company’s new capital facility, an asset-backed working capital solution, stands out as Egypt’s first of its kind. This structure addresses Sylndr’s unique operational needs, providing scalable financial support to drive growth while ensuring security for the lenders involved.
EFG Hermes acted as the sole financial advisor for this transaction. Commenting on the deal, Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes, highlighted its transformative potential for Egypt’s startup ecosystem. “This innovative financing structure empowers Sylndr to scale with confidence, showcasing our commitment to dynamic financial solutions that foster resilience and growth,” she stated.
Fueling Growth and Expansion
Sylndr plans to utilize this funding to expand its inventory, enhance customer experiences, and offer broader financing options. By reinforcing its platform, the company aims to strengthen its market position and redefine how Egyptians buy and sell used cars.
This latest funding follows Sylndr’s impressive $12.6 million pre-seed round in 2022, led by RAED Ventures with participation from Algebra Ventures and others. It reflects the startup’s ability to attract significant investment, underscoring the confidence stakeholders have in its mission to transform Egypt’s used car market.
Transforming Egypt’s Automotive Landscape
Sylndr’s vision is to bring trust, transparency, and convenience to the used car industry in Egypt. CEO Omar El Defrawy expressed gratitude for the lenders’ support and reaffirmed Sylndr’s commitment to reshaping mobility solutions in the region. “This milestone enables us to reach more communities, offer more customers high-quality vehicles, and redefine the car-buying experience,” he stated.
With the Egyptian automotive market experiencing rapid growth, Sylndr is poised to play a pivotal role in making vehicle ownership more accessible. The company’s innovative approach and strong financial backing position it as a leader in this evolving sector.
A Collaborative Effort
The success of this deal is credited to the combined expertise of EFG Hermes and its partners. Legal advisory services were provided by Adsero for Sylndr and Sarie-Eldin & Partners for the lenders, ensuring a seamless and well-structured transaction. This collaboration sets a benchmark for future funding solutions tailored for startups and SMEs in Egypt.
Looking Ahead
As Sylndr embarks on this next phase of growth, its focus remains on enhancing operations and delivering value to its customers. By leveraging this capital facility, Sylndr is set to revolutionize the used car market in Egypt, establishing itself as a trusted and transparent platform for automotive needs.
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Last Updated on November 26, 2024 by Safiya K
