Mtor gets $2.8m pre-seed for its online auto parts marketplace
Egypt's online auto parts marketplace, Mtor, has secured a pre-seed funding round of $2.8 million, led by Algebra Ventures. Other contributors include the Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various notable local and global angel investors.
Mtor stands out as a transformative force in the automotive aftermarket industry, offering advanced technological solutions to streamline the currently fragmented supply chain. The platform serves as a centralized hub, enabling local car workshops to access a diverse array of automotive spare parts promptly and at competitive prices. With a focus on meeting the needs of mechanics and car owners, Mtor aims to enhance delivery speed and provide accurate data, simplifying and expediting the overall workflow for mechanics.
The funds will be channeled towards expanding Mtor's product suite, digitalizing local car workshops, and addressing inefficiencies prevalent in the automotive spare parts supply chain across Egypt and the broader region. Mtor has strategically partnered with key spare parts importers, facilitating their distribution to workshops while equipping them with predictive demand data to optimize importing cycles and cash flow.
Egypt's automotive after-sales market, among the largest in the African and MENA regions, boasts a market value exceeding $5 billion. The country harbors an aging fleet of 8 million registered vehicles, with an average car age well above the global average. Car owners currently expend an average of over $600 annually at more than 35,000 car workshops and service providers. The automotive after-sales market in Egypt represents substantial untapped potential. More so, the local automotive aftermarket currently grapples with inefficiencies stemming from a disjointed and disorganized supply chain. Workshops and mechanics encounter numerous hurdles, such as limited product availability, unreliable fitment data, and a lack of transparency in pricing. These challenges, in turn, impact car owners, who face issues like a scarcity of service quality assurances and a convoluted, time-consuming process for procuring spare parts. Since its establishment in 2022, Mtor claims to have fulfilled over 70,000 orders and forged partnerships with over 2,500 car workshops in the greater Cairo area.