Egyptian online used car marketplace Sylndr is looking to expand after raising $12.6 million in a pre-seed funding round.
As Tech Funding News reported Monday (May 23), the Cairo-based company plans to use the funds to double the size of its team, while building on its technological infrastructure, brand awareness and operational capabilities.
“We aim to become the most trusted used car retailer in the region. Our customers will be able to sell their cars directly in as little as 24 hours, with free collection and fast payment,” said Sylndr CEO Omar El Defrawy. “Sylndr will be the go-to place for customers seeking affordable cars, featuring an extensive range of high-quality used vehicles accessible through a diverse set of financing solutions.”
Founded by El Defrawy and Amr Mazen, Sylndr is an eCommerce marketplace that lets consumers buy and sell their cars and find financing. The report compared Sylndr to Cazoo, based in the U.K., Mexico’s Kavak, and the Indian marketplace Cars 24.
All three firms have their eye on expansion. As PYMNTS reported earlier this month, Cazoo has expanded into Spain. Following its $700 million Series E last year, Kavak indicated it was looking at moving into Brazil, with rumors about it also considering the Turkish market. And Cars24, fresh off a $1.8 billion valuation last year, said it wanted to expand to Australia.
“The secondary car market is highly fragmented and more often than not, consumers do not have a trusted counterpart,” said Omar A. Almajdouie, managing partner at RAED Ventures, which led the funding round, adding that the “market is massive, ripe for disruption.”
PYMNTS explored the challenges facing the online used car sector last month in our report on CarMax’s used-vehicle retail sales, which were down 5.2% year-over-year, while comp store tallies fell 6.5%. However, prices — with tailwinds of inflation — rose nearly 40%. This mismatch was enough to bring revenues up by 32% year-over-year.
“We believe a number of macro factors weighed on our fourth-quarter unit sales performance, including declining consumer confidence, the omicron-fueled surge in COVID cases, vehicle affordability and the lapping of stimulus benefits paid in the prior year period,” CarMax CEO Bill Nash said during an earnings call at the time.