Egypt used car e-commerce startup Sylndr gets $7.5 million capital financing

Sylndr, an Egypt-based online marketplace for used cars, has secured $7.5 million (370 million Egyptian pounds) in capital financing. The financing was powered by EFG Hermes, an EFG Holding company and the leading investment bank in the Middle East and North Africa (MENA) region. 

According to an announcement by EFG Hermes, the innovative structure of this transaction stands as Egypt’s first asset-backed working capital solution tailored specifically to the unique dynamics of Sylndr’s business model. 

This milestone, the financing company believes, highlights the commitment of Egypt’s banking sector to empowering startups and SMEs with creative, scalable financial solutions.

Speaking about the capital facility, Co-Founder and CEO of Sylndr, Omar El Defrawy, expressed the startup’s gratefulness to EFG Corp-Solutions, Bank NXT, and EG Bank for their invaluable support and confidence in the startup’s mission. 

“Their dedication, along with the expertise of all parties involved, will enable us to expand our services, reach more communities, and offer more customers access to high-quality vehicles and seamless financing options. We look forward to continuing to transform the way people buy and sell cars in Egypt,” the CEO said.

Sylndr to revolutionize Egypt’s automotive industry

Founded in November 2021 by Omar El Defrawy and Amr Mazen, Sylndr is touted as Egypt’s leading online used cars player. The company is focused on making used cars more affordable to people by giving them financing options. 

With the latest financing facility, the startup intends to support its ambitious growth strategy and enhance its operational efficiency and scalability while solidifying its commitment to revolutionising Egypt’s automotive industry. 

The startup says the transaction has been carefully structured to set a new standard for scalable, ring-fenced capital financing. This has been specifically tailored for its highly complex legal and financial framework that acts as a base for any new lender to scale up the structured facility.

Speaking about the investment transaction, MD of Debt Capital Markets of Investment Banking at EFG Hermes, Maie Hamdy, said it marks a significant shift not only for the online used car platform but for Egypt’s growing startup ecosystem. 

“Through this innovative, ring-fenced financing structure, we’ve provided Sylndr with the financial flexibility to scale confidently while ensuring the highest level of security for lenders. We are excited to support Sylndr’s journey as it sets new standards in the online used-car market,” he said.

For Sylndr’s CEO, the financing facility also aligns seamlessly with the company’s mission to transform the used car market by building a trusted and transparent platform for buying, selling, and financing high-quality used vehicles. 

Sylndr is set to leverage this capital to improve customer experience, increase inventory diversity, and broaden financing options, positioning itself as Egypt’s premier destination for used cars.

“This financing facility empowers us to unlock unprecedented growth while reinforcing our commitment to bring trust, transparency, and convenience to Egypt’s used car market. This milestone is a testament to Sylndr’s vision of offering differentiated mobility solutions, reshaping how people access affordable and reliable vehicles in Egypt’s growing market,” CEO Omar El Defrawy, said.

EFG Hermes served as the sole financial advisor for the transaction. EFG Corp-Solutions, Bank NXT and EG Bank acted as lenders, amongst others. Adsero provided legal advisory services for Sylndr and Sarie-Eldin & Partners for the lenders.

The bank says it remains committed to delivering dynamic financial solutions that foster growth and resilience for its clients, contributing to the broader economic transformation they are witnessing across Egypt.

“We are proud to have utilized the inherent synergies within EFG Holding’s group of companies, having worked with EFG Corp-Solutions and Bank NXT as lenders on this transaction, utilising the range of services we have to offer to serve our clients effectively,” Maie Hamdy said.

See also: 12-year-old Nigerian pupil gets $11.5m to install her virus-removal air filter in US schools