Sylndr, Egypt’s foremost online used car marketplace, has reached a transformative milestone, securing a groundbreaking EGP 370 million ($7.5 million) working capital facility to bolster its ambitious growth trajectory. Facilitated by EFG Hermes, the leading investment bank in the MENA region, this financing marks Egypt’s first-ever asset-backed working capital solution, tailored specifically to the startup’s unique business dynamics.
In 2022, Sylndr raised $12.6 million for its pre-seed round led by RAED Ventures, with participation from Algebra Ventures, Nuwa Capital, 1984 Ventures, Global Founders Capital, and a number of prominent regional and global angel investors.
This innovative financial structure represents more than just a funding boost for Sylndr—it underscores Egypt’s commitment to fostering a robust startup ecosystem through creative and scalable financial solutions. The move is a testament to the banking sector’s confidence in Sylndr’s disruptive vision for Egypt’s automotive industry.
A Financing First for Egypt
EFG Hermes served as the sole financial advisor for the transaction, crafting a ring-fenced financing framework that ensures scalability while minimizing risks for lenders. This facility brings together EFG Corp-Solutions, Bank NXT, and EG Bank as key lenders, alongside Adsero and Sarie-Eldin & Partners providing legal advisory support for Sylndr and the lenders, respectively.
“This transaction marks a significant shift not only for Sylndr but for Egypt’s growing startup ecosystem,” said Maie Hamdy, Managing Director of Debt Capital Markets at EFG Hermes. “Through this innovative structure, we’ve provided Sylndr with the financial flexibility to scale confidently while ensuring the highest level of security for lenders.”
The strategic nature of this partnership highlights the synergies within EFG Holding’s group of companies and its dedication to driving Egypt’s broader economic transformation.
Driving Transformation in the Automotive Market
Sylndr intends to channel this funding into enhancing customer experience, expanding inventory options, and diversifying financing solutions. With the used car market at its core, Sylndr’s platform aims to redefine the customer journey by offering transparency, trust, and convenience in buying and selling vehicles.
“This financing facility empowers us to unlock unprecedented growth,” said Omar El Defrawy, Co-Founder and CEO of Sylndr. “It reinforces our commitment to bring trust, transparency, and convenience to Egypt’s used car market. We are particularly grateful to our financial partners for their confidence in our mission to reshape how people access affordable and reliable vehicles.”
El Defrawy emphasized that Sylndr’s enhanced capital base will enable the company to reach underserved communities and expand its services, positioning itself as a leader in Egypt’s mobility solutions market.
Setting New Standards in Financing Startups
Sylndr’s collaboration with EFG Hermes and other stakeholders represents a broader trend in Egypt’s financial ecosystem, where institutions are increasingly aligning their expertise to empower startups with tailor-made solutions. The transaction’s structure not only sets a benchmark for financial innovation but also paves the way for other startups in Egypt to access similar funding mechanisms.
