Egypt’s online auto parts marketplace Mtor has announced a $2.8M pre-seed round led by Algebra Ventures, with participation from Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital Management, and several prominent local and global angel investors.
Mtor is an online marketplace revolutionizing the automotive aftermarket industry. It provides sophisticated tech solutions to streamline a currently fragmented supply chain, creating a unified platform for local car workshops to access a broad range of automotive spare parts on-demand at competitive prices. Catering to the needs of mechanics and car owners, Mtor strives to provide faster delivery and accurate data that simplifies and accelerates the mechanic’s workflow.
“It can be a car owner’s nightmare to get their car serviced. Mtor was founded to fundamentally transform this reality, and make the process easier and efficient, empowering a layer of local car workshops that is well rounded with quality parts, a suitable price position and a good customer experience,” Mohamed Maged, CEO of Mtor, said.
Founded just a year ago, Mtor boasts a strong team, comprised of individuals with deep-rooted experience in tech, as well as the automotive and logistics sectors.
Egypt’s automotive after-sales market, one of the largest in the African and MENA regions, has a market value exceeding $5B. The nation has an aging fleet of 8M registered vehicles with an average car age significantly above the global average. Car owners are spending an average of over $600 annually at over 35,000 car workshops and service providers. Egypt’s automotive after-sales market represents a massive untapped potential. Since its inception in 2022, Mtor has delivered over 70,000 orders, partnering with over 2,500 car workshops in the greater Cairo area.
“We aim to become the most trusted partner to our mechanics by empowering them to better cater to the car owner’s needs in terms of quality parts and fast service,” Maged added.
The local automotive aftermarket is inefficient with a fragmented and scattered supply chain. Workshops and mechanics face many challenges including limited product availability, inaccurate fitment data, and a lack of price transparency. These issues inevitably trickle down to car owners, who are also faced with limited-service quality guarantees and a complex time-consuming spare parts procurement process. Mtor aims to overhaul this system through its controlled tech-enabled marketplace, backed by its proprietary Mtor Mechanic app, where pricing, availability, and fitment data are reliably just a click away.
“We are building the tech infrastructure where global suppliers and importers, as well as local mechanics, can speak the same language, optimizing the supply chain through a controlled, tech-enabled marketplace, where pricing, availability and fitment data are reliably one-click away from workshops,” Maged added.
The funds raised will be utilized to further grow Mtor’s product suite, digitize local car workshops and eliminate major inefficiencies in the automotive spare parts supply chain, in Egypt and the region. Mtor has partnered with leading spare parts importers to facilitate their distribution to workshops and provide them with the necessary predictive demand data to optimize their importing cycles and cash flow. Above all, Mtor’s fundamental objective is to cultivate an exceptional team to provide stellar products and service across the automotive aftermarket supply chain.
Karim Hussein, Managing Partner at Algebra Ventures said: “We are delighted to partner with Mtor’s founders and team who have built an innovative business that solves a significant pain for mechanics, auto parts suppliers and vehicle owners. Mtor’s unique visual and voice interface coupled with a sophisticated fitment and parts matching engine eliminates the hours spent daily by mechanics hunting for the right part at the right price. We look forward to supporting Mtor on expansion in Egypt and beyond.”
Laurens Groenendijk, Managing Partner at Dutch Founders Fund said: “Mtor really fits in our strategy to ‘kill the phone’ in legacy industries. Mtor really adds a lot of value to streamline the procurement processes for the entire market which is huge in Egypt. There is a lot of work to do to educate local workshops but I’m sure we are in a prime position to create a big impact in the market.”