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Egyptian leading online used car trading platform, Sylndr, has raised an amount of USD 7.4 million, or EGP 370 million, in its new round. It is the new capital-raising exercise for the startup following its USD 12.6 million pre-seed in May 2022. The latest capital injection is likely to further boost Sylndr’s growth and allow it to expand its inventory size on vehicles, upgrade the customer experience, and develop diverse sources for future funding. EFG Hermes acted as the sole financial advisor for this round, designing a tailor-made financing structure that could adequately fit in the company’s complex legal and financial framework.
The funding round secured input from several other financial institutions such as EFG Corp-Solutions, NXT Commercial Bank, and EG Bank. Sylndr’s operational capacity will be strengthened even as the enterprise is given the space to expand and diversify its business model going forward.
Catalyzing growth in Egypt’s second-hand car market
Sylndr has emerged as a major player in Egypt’s rapidly expanding used vehicle market, which has been fueled by increasing demand for cheaper cars. In such a scenario, where new car prices have begun to increase, most Egyptians are switching to the used car market, which has emerged as an indispensable platform. The services of such platforms like Sylndr provide a transparent alternative that makes accessing and selling used vehicles easier for consumers than traditional platforms.
Sylndr has redefined the used car market through its digital-first approach with a more streamlined, convenient, and trusted environment for both the car buyer and seller. Features include inspection reports on the vehicle, detailed car history, and secure payment options, all of which help alleviate many of the concerns buyers have while buying a used car.
Improving Operational Efficiency for Sylndr
The funds raised will be used majorly to increase the numbers of vehicles in stock, which are usually provided to clients increasing in number. Another area Sylndr is looking to boost is the experience that clients will encounter when using its services. This will be boosted through new technologies, better interfaces with users, and enhanced support.
As such, “this funding is a giant leap for Sylndr and the Egyptian startup ecosystem as a whole,” declared Mai Hamdy, Managing Director of Debt Capital Markets at EFG Hermes. The new financing structure not only supports the expansion plans by Sylndr but also offers flexibility to secure the rights of lenders, a very important factor in making this investment sustainable for all parties involved. This is a very important moment not only for the company but also for Egypt’s very fast-moving startup scene, as more and more investors are keeping an eye on digital platforms such as Sylndr.
Diversifying funding sources for the future
Diversification of future funding sources is a significant part of Sylndr’s strategy, allowing the company to tap capital from different financial avenues as it scales. The company aims to take advantage of various lending structures and financial products that can fuel its growth in the next couple of years. It will help Sylndr increase its financial flexibility as it scales its operations in a rapidly changing market.
The successful completion of this funding round strengthens Sylndr’s position in Egypt’s burgeoning digital economy. As consumer behavior shifts towards online platforms, more sectors, including automotive trading, are expected to follow suit. With its transparent processes and customer-centric approach, Sylndr is positioned to capture a substantial share of the used car market as it continues to expand its offerings and improve service quality.
Sylndr’s Vision for the Future
Looking ahead, Sylndr aims to capitalize on its strong market position in Egypt while exploring opportunities for regional expansion. The company plans to integrate advanced technology to streamline operations, such as AI-powered tools for better pricing, predictive analytics for inventory management, and enhanced mobile platforms for consumers. This vision aligns with global trends toward digital transformation in the automotive industry, where used car marketplaces are becoming increasingly tech-driven.
Sylndr is also dedicated to offering the transparency and speedy access that one needs to buy a car conveniently. Online tools provide buyers with so much information about each vehicle, even its inspection reports and financing options, for a more efficient and reliable process. This commitment makes Sylndr a big difference compared with that of conventional used car dealerships.
A Growing Market for Online Car Trading
Egypt’s market for used cars is experiencing growth due to a combination of factors, including pressure from the economy and the high desire for secondhand vehicles as economical substitute products to purchase newly manufactured vehicles. The online business Sylndr represents part of the e-commerce industry in the country as investment and interest from the local and international players really calls for taking digital platforms with convenience and transparency to satisfy consumer needs.
