Grace Ashiru
Sylndr, an Egyptian online marketplace focusing on pre-owned vehicles, has secured a working capital facility of EGP370 million (US$7.45 million), marking Egypt’s inaugural asset-backed financing deal.
The working capital facility was structured by the investment banking division of EFG Hermes, with financial backing from the Egyptian Gulf Bank, Next Bank, and EFG Financial Solutions.
Founded in November 2021 by Omar El Defrawy and Amr Mazen, Sylndr is an online platform dedicated to the automotive sector, allowing users to buy and sell pre-owned vehicles with transparency and reliability.
The facility, providing Sylndr with enhanced operational flexibility and an opportunity to refine its business model, marks a significant milestone in Egypt’s financial landscape. This agreement introduces a novel and sustainable funding approach, allowing Sylndr to integrate an asset-backed structure into its strategy.
Mai Hamdy, Executive Director of Debt Capital Markets at EFG Hermes, stated, “This deal represents a key achievement for Sylndr and sets a precedent for startups in Egypt. It highlights our dedication to providing innovative financial solutions that enable businesses to expand while overcoming challenges.”
The facility, designed to support Sylndr’s growth objectives, also sets a benchmark for other lenders exploring innovative approaches to financing startup businesses.
Omar El-Dafrawy, co-founder and CEO of Sylndr, remarked, “This investment will enable us to seize new opportunities, uphold our dedication to transparency, and reshape the way customers engage with the pre-owned car market.”
By leveraging the working capital, Sylndr aims to boost its operational efficiency and expand its reach, all while improving the overall customer experience. The company seeks to create a reliable and transparent marketplace for buying and selling pre-owned vehicles. With this funding, Sylndr plans to diversify its financing options and strengthen its leadership position in Egypt’s rapidly growing used car market.
