Egyptian online car retail startup, Sylndr, has announced securing a $7.45 million working capital facility from the Investment Banking division of EFG Hermes.

The facility funding which is structured as the first asset-backed financing arrangement of its kind in Egypt, will enable e-commerce platform to integrate a sustainable and innovative financing mechanism into its strategy, according to co-founder and CEO, Omar El Defrawy.

“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.”

While announcing the new funding, Defrawy noted that the financing package was provided by EFG Financial Solutions, Next Bank, and the Egyptian Gulf Bank. Designed to align with Sylndr’s growth aspirations, the facility also sets a precedent for other lenders considering innovative structures for credit provision to emerging businesses.

“Sylndr aims to utilise the working capital to expand its reach and operational efficiency while improving the overall customer experience.

“The company’s mission revolves around creating a reliable and transparent platform for buying and selling used cars. With the new funds, Sylndr plans to introduce a wider variety of financing solutions, further solidifying its position as a leader in Egypt’s growing used car market.

“This funding will allow us to explore new opportunities, maintain our commitment to transparency, and redefine how customers interact with the used car market,” he said.

Sylndr which specializes in the used car market, was founded by founded by El Defrawy and Amr Mazen in November 2021, as an automotive-focused e-commerce marketplace which allows customers to reliably and transparently sell and buy used cars.

By stepping up its regulatory monitoring of the rapidly growing fintech industry, the Nigerian government, through the Securities and Exchange Commission, has reiterated its commitment to protecting investors.

SEC Director-General Emomotimi Agama revealed this in a statement during a one-day capacity training for financial journalists in Abuja on Sunday.

Agama gave stakeholders the assurance that rules will be enforced by the Commission to prevent money misappropriation and guarantee that FinTech companies follow capital market norms.

“It is time for fintech operators to be held accountable to the rules of the capital market, particularly when raising funds,” Agama said, emphasising the need for a regulatory environment that fosters innovation while maintaining investor protection.

Hasfat Rufai, the Director of the SEC’s Registration, Exchanges, and Market Infrastructure Department recognised the difficulties posed by the emergence of digital platforms, cryptocurrencies, and fintech companies during a panel discussion at the event.

Rufai emphasised the Commission’s will to safeguard investors’ interests despite these recent upheavals.

“While these trends bring new opportunities, they also come with challenges, particularly around regulation and investor protection,” she noted.

“The digital age has transformed the investment landscape, offering greater accessibility, innovation, and opportunity,” Rufai added, going into additional detail about the changes in the investment industry. Investors must embrace technology, seek information, and make wise investment decisions to adjust to this changing climate.