Egypt-based online marketplace for used cars Sylndr has secured a $7.46 million capital facility to revolutionize Egypt’s automotive industry.
As part of the deal, 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.
Omar El Defrawy, Co-Founder and CEO of Sylndr, said, “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. We are particularly grateful to EFG Corp-Solutions, Bank NXT, and EG Bank for their invaluable support and confidence in our 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.”
Founded in 2021 by Amr Mazen and Omar El Defrawy, Sylndr is an automotive-focused e-commerce marketplace bringing innovation to the used car market, where customers can reliably and transparently sell and buy used cars. The company is aiming to build trust in the used-car market by becoming the go-to place for customers seeking to sell and buy their cars, through an extensive range of high-quality used vehicles accessible across a diverse set of financing solutions.
The transaction has been carefully structured to set a new standard for scalable, ring-fenced capital financing specifically tailored for Sylndr’s highly complex legal and financial framework that acts as a base for any new lender to scale up the structured facility.
This financing facility aligns seamlessly with Sylndr’s mission to transform the used car market by building a trusted and transparent platform for buying, selling, and financing high-quality used vehicles.
Egypt Used Car Market comprise of entities such as Organized OEM’s, Multi-Brands and Online Classified platforms along with banking institutions providing used car financing services and has grown at a steady growth rate since 2021. The growth is supported by increase in millennials population in the country and the emerging players entering into the market .
Maie Hamdy, MD, Debt Capital Markets of Investment Banking at EFG Hermes, commented, “This transaction marks a significant shift not only for Sylndr 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. EFG Hermes remains committed to delivering dynamic financial solutions that foster growth and resilience for our clients, contributing to the broader economic transformation we’re witnessing across Egypt. We are excited to support Sylndr’s journey as it sets new standards in the online used-car market. 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.”
In 2022, In 2022, Sylndr secured a $12.6 million pre-seed funding round, led by RAED Ventures, with contributions from Algebra Ventures, Nuwa Capital, and other investors.
With this funding, Sylndr aims to support its ambitious growth strategy and enhance its operational efficiency and scalability while solidifying its commitment to revolutionising Egypt’s automotive industry.