Sylndr Bags US$7.5 Million in Asset-Backed Capital Facility
The startup will use the sum to support its growth, improve operational efficiency, and expand its financing options.
Sylndr, an online platform for buying, selling, and financing used cars in Egypt, has garnered a US$7.5 million working capital facility. The financing was structured and advised by investment bank EFG Hermes.
The facility is Egypt’s first asset-backed working capital solution that has been specifically designed to align with Sylndr’s business model.
Founded in 2021 by Amr Mazen and Omar El Defrawy, Sylndr intends to use the funding to support its growth, improve operational efficiency, expand its inventory, and increase financing options.
The financing structure accommodates Sylndr’s specific legal and financial framework, offering a foundation for potential future expansion. The transaction has been designed to establish a benchmark for scalable, ring-fenced capital financing, customized to fit Sylndr’s intricate legal and financial framework, serving as a foundation for future lenders to expand the structured facility.
EFG Hermes acted as the sole financial advisor for the transaction. Lending institutions included EFG Corp-Solutions, Bank NXT, and Egyptian Gulf Bank (EG Bank). Adsero provided legal advisory services for Sylndr, while Sarie-Eldin and Partners advised the lenders.
Sylndr had previously raised $12.6 million in a pre-seed funding round in 2022, led by RAED Ventures with participation from Algebra Ventures, Nuwa Capital, and others.
In a statement, Omar El Defrawy, co-founder and CEO of Sylndr, said, “This financing facility empowers us to unlock unprecedented growth while reinforcing our commitment to bring trust, transparency, and convenience to Egypt’s used car market. This milestone is a testament to Sylndr’s vision of offering differentiated mobility solutions, reshaping how people access affordable and reliable vehicles in Egypt’s growing market. We are particularly grateful to EFG Corp-Solutions, Bank NXT, and EG Bank for their invaluable support and confidence in our mission. Their dedication, along with the expertise of all parties involved, will enable us to expand our services, reach more communities, and offer more customers access to high-quality vehicles and seamless financing options. We look forward to continuing to transform the way people buy and sell cars in Egypt.”
Maie Hamdy, managing director, debt capital markets of investment banking at EFG Hermes, commented, “This transaction marks a significant shift not only for Sylndr but for Egypt’s growing startup ecosystem. Through this innovative, ring-fenced financing structure, we’ve provided Sylndr with the financial flexibility to scale confidently while ensuring the highest level of security for lenders. EFG Hermes remains committed to delivering dynamic financial solutions that foster growth and resilience for our clients, contributing to the broader economic transformation we’re witnessing across Egypt. We are excited to support Sylndr’s journey as it sets new standards in the online used-car market. We are proud to have utilized the inherent synergies within EFG Holding’s group of companies, having worked with EFG Corp-Solutions and Bank NXT as lenders on this transaction, utilizing the range of services we have to offer to serve our clients effectively.”
