Egyptian startup Sylndr, an e-commerce platform specialising in the used car market, has secured a EGP370 million (US$7.45 million) working capital facility, structured as the first asset-backed financing arrangement of its kind in Egypt.
Founded by Omar El Defrawy and Amr Mazen in November 2021, Sylndr is an automotive-focused e-commerce marketplace, allowing customers to reliably and transparently sell and buy used cars.
The startup raised a US$12.6 million pre-seed funding round in May 2022, and has now secured a EGP370 million (US$7.45 million) working capital facility, orchestrated by the Investment Banking division of EFG Hermes.
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 utilise 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.
