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Sylndr, an Egyptian e-commerce platform that specializes in the used automobile market, has secured an EGP370 million (US$7.45 million) working capital facility, which is structured as Egypt’s first asset-backed financing arrangement.
The EFG Hermes Investment Banking division structured the working capital facility. The Egyptian Gulf Bank, Next Bank, and EFG Financial Solutions provided the financing package.
Sylndr is an automotive-focused e-commerce platform that was founded in November 2021 by Omar El Defrawy and Amr Mazen. It enables users to buy and sell old automobiles transparently and dependably.
The facility, which gives Sylndr more flexibility to grow its operations and improve its business model, is a landmark in Egypt’s financial environment. The agreement allows Sylndr to include a creative and sustainable funding mechanism into its strategy by utilizing an asset-backed structure.
According to Mai Hamdy, executive director of debt capital markets at EFG Hermes, “This transaction is not only a major milestone for Sylndr but also a benchmark for startups in Egypt. The deal underscores our commitment to delivering cutting-edge financial solutions that empower companies to grow while navigating challenges effectively.”
The facility, which was created to support Sylndr’s expansion goals, also establishes a standard for other lenders thinking about creative ways to provide loans to start-up companies.
Omar El-Dafrawy, co-founder and CEO of Sylndr, stated, “This funding will allow us to explore new opportunities, maintain our commitment to transparency, and redefine how customers interact with the used car market.”
By using the working capital, Sylndr hopes to increase its operational effectiveness and reach while enhancing the general customer experience. The company’s goal is to establish a trustworthy and open marketplace for used car sales and purchases. With the additional funding, Sylndr intends to expand its financing options and bolster its position as a market leader in Egypt’s expanding used automobile industry.
Read more on Tech Gist Africa:
Ariika, an Egyptian eCommerce platform, has raised $3 million in a Series A extension round
Amenli, an Egyptian insurtech startup, has raised $2.3 million in a funding round
Qara, an Egyptian supply chain startup, has raised $2.6 million in a funding round
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