Cairo Announcement He collected $ 15.7 million because it goes beyond the sale of used cars for automotive financing, servicing and tools for dealers. The NCLUDE fund in the development of Partners International led the round.
The company that operates on the rapidly developing Egyptian vehicle market said that the last round includes each fresh equity and previously unannounced financing of seeds.
Last yr, Silndr also collected almost $ 10 million in debt financing from local banks, increasing the total number from launching to over $ 30 million. In 2022, Silndr raised an initial round of $ 12.6 million, the largest of its kind in Africa.
Omar DefravyFormer director on a local food discovery platform, Elmenus, founded a platform of used cars in 2021 and initially focused on buying used cars directly from consumers, renovating them and resale with a warranty and a money return guarantee.
Since then, it has transformed into a wider mobility platform, offering digital automotive loans, a automotive service and a market for third -page dealers.
“When we started operating, we focused primarily on the consumer problem related to buying and selling cars,” said the general director of El Defrava in an interview with TechCrunch. “And when we began to scale this business, it became very clear to us that the market is much greater, and creating values for customers would require us to build other convincing companies that integrate with what we do.”
Egypt has over 6 million cars on the road, and the demand for used cars is growing among currency devaluation and rising prices of latest imports. In 2021, the government banned the import of cars, forcing the market to rely on national wrestling, increasing prices reflecting the exchange rate.
As a result, used cars in Egypt, at the same time exceeding latest vehicles by 3: 1, are sold primarily through unregulated dealers or classified web sites, where informal transactions leave buyers transporting most of the risk.
Silndr sees the possibility in this mess, which estimates as a market value $ 10 billion by formalizing inspection processes, standardized prices, digital financing and securing ownership transfer.
El Defraw said that the average sale price of the Silndr platform is from USD 20,000 to 25,000. He explained that this number remained stable in dollars in the last three years, despite the undeniable fact that the Egyptian pound has lost greater than half of its value. This is because the prices of used cars in Egypt are sold similar to imported latest cars that are dollar
Silndr refused to divide the revenues or the size of the transaction, but said that sales increased almost ten times since 2022. Revenues from Egyptian kilos increased 22 times in this era, and five, when it is corrected by dollar, said the director general, who previously conducted financial operations at Food Discovery Elmenus.
Digitization of the Egyptian automotive market
Silndr expansion, apart from selling a automotive to three latest divisions, is to reduce its dependence on stocks and capital.
There is a silndr swift, a digital automotive financial product that connects buyers with banks and insurers. According to El Defrava, the platform ensures the approval of financing in lower than 10 minutes. He added that Silndr does not borrow from his own balance.
In addition to Swift, Silndr recently introduced Silndr Plus, which offers inspections, maintenance and service for cars sold on its platform. The third vertical, al-Żyans, is a consumer dealer market, which allows third party dealers to the list and sale of cars with Silndr service control, transfer of ownership and payment.
Each vertical works under its own brand, but Silndr integrated all of them with one mobile application-creating a comprehensive shop for buying, financing and managing the ownership of the automotive. “We fully integrated these services to help customers buy, sell, finance, rent and service their cars – and to help dealers to act more efficiently and do digital,” said El Defravy, a former investment banker.
He added that the company’s revenues are now evenly divided between direct sales to consumers and B2B transactions with dealers. However, he expects newer financing and servicing to 60% gross profit over two years.
Silndr currently cooperates with over 1000 dealers throughout the country and serves each buyers and sellers via online and offline channels. While other regional players, corresponding to Contactcars, OLX and Nigeria Małoczek, which introduced to Egypt from Autotager in 2023, have similar offers, El Defray claims that they do not consider them close to competitors in terms of ensuring a comprehensive solution for buyers and dealers in a chain of values.
He says that the infrastructure of control, renovation and banking partnership makes it difficult to restore your model.
As such, unlike other startups in Egypt, which traditionally used their home market as a stepping stone for the Persian Gulf, plans to deepen its presence in Egypt, where the CEO claims that this is “the largest company trading cars according to size and value.”
“Silndr builds the digital spine of mobility on the market, where access, trust and financing has long been barriers to ownership. Their integrated model combines trade, credit and technology to fundamentally improve the way the Egyptians buy and sell cars,” said Ashley Lewis, managing partner at Dpi Venture Capital.
This means the third offer announced by the recently launched London company VC last month, after investing in digital savings and Moneyfellows and Startup Proptech Nawy credit platform.
Other VC corporations, including Algebra Ventures, Nuwa Capital, Raed Ventures, Egyptian Gulf Holding, Founded Fund, Beltone Venture Capital and Camel Ventures, in the round.