Sylndr, Egypt’s e-commerce platform specializing in the used car market, has secured a significant milestone in its growth journey. The company announced a groundbreaking EGP 370 million (approximately $7.45 million) working capital facility, structured as the first asset-backed financing arrangement of its kind in Egypt. The deal, orchestrated by the Investment Banking division of EFG Hermes, marks a pivotal step in the evolution of financing solutions tailored for startups and SMEs in the Middle East and North Africa (MENA) region.
The facility represents a landmark in Egypt’s financial ecosystem, offering Sylndr enhanced flexibility to scale its operations and refine its business model. By leveraging an asset-backed framework, the arrangement enables Sylndr to integrate a sustainable and innovative financing mechanism into its strategy.
“This transaction is not only a major milestone for Sylndr but also a benchmark for startups in Egypt,” said Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes. “The deal underscores our commitment to delivering cutting-edge financial solutions that empower companies to grow while navigating challenges effectively.”
The financing package was provided by EFG Financial Solutions, Next Bank, and the Egyptian Gulf Bank. Designed to align with Sylndr’s growth aspirations, the facility also sets a precedent for other lenders considering innovative structures for credit provision to emerging businesses.
Sylndr aims to utilize the working capital to expand its reach and operational efficiency while improving the overall customer experience. The company’s mission revolves around creating a reliable and transparent platform for buying and selling used cars. With the new funds, Sylndr plans to introduce a wider variety of financing solutions, further solidifying its position as a leader in Egypt’s growing used car market.
“This funding will allow us to explore new opportunities, maintain our commitment to transparency, and redefine how customers interact with the used car market,” said Omar El-Dafrawy, co-founder and CEO of Sylndr, who was elmemus’ former chief financial officer. He emphasized the importance of trust and innovation in their business model, adding that the collaboration with EFG Hermes and its partners demonstrates the robustness of Sylndr’s vision and potential.
The financing deal is expected to catalyze a shift in Egypt’s startup financing landscape, presenting a viable model for similar ventures seeking to scale. According to Hamdy, the transaction represents “a major transformation for startups in Egypt,” signaling the willingness of the local banking sector to adapt to the unique needs of fast-growing businesses.
By leveraging Sylndr’s vehicle assets as collateral, the structure ensures a secure and scalable financing framework. This model could inspire a wave of asset-backed funding solutions in Egypt’s entrepreneurial ecosystem.
Founded in 2021 by Omar El Defrawy, Taymour Sabry and Amr Mazen to address inefficiencies in the used car market, Sylndr has grown into a trusted platform offering both buyers and sellers a seamless experience. The company now plans to channel its newfound resources into improving its platform, diversifying its inventory, and broadening its financing options. These efforts aim to bolster customer satisfaction and establish Sylndr as a cornerstone of Egypt’s automotive e-commerce sector.
The used car market in Egypt holds immense potential, driven by growing demand and the necessity for reliable, cost-effective transportation solutions. By positioning itself at the forefront of this market, Sylndr seeks to capitalize on these trends while fostering trust and transparency among its users.
This deal exemplifies the ongoing evolution of Egypt’s startup ecosystem. By facilitating access to innovative financing, institutions like EFG Hermes are playing a vital role in driving economic development and entrepreneurship.
For Sylndr, this financing marks more than just a step toward growth; it’s an affirmation of its potential to transform the used car market. As the company scales its operations, it may set new benchmarks for customer-centric innovation in the automotive industry.
The partnership between Sylndr and leading financial institutions underscores a shared vision for economic resilience and innovation in Egypt, charting a course for the future of the country’s e-commerce and automotive sectors.