Egyptian online auto parts marketplace, Mtor, has secured $2.8 million in pre-seed investment led by Algebra Ventures, an Egypt-focused venture capital firm. The funding round also saw participation from other investors such as Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various local and global angel investors.
Key Takeaway
Egyptian online auto parts marketplace, Mtor, has raised $2.8 million in pre-seed funding. The startup aims to address the inefficiencies in the auto parts supply chain and provide a tech-enabled platform for local workshops to access affordable and quality parts. Mtor focuses on empowering independent workshops and plans to expand its operations in the Egyptian market.
Aiming to Solve Inefficiencies in the Auto Parts Supply Chain
Mtor was founded by Mohamed Maged in April 2022, drawing inspiration from his experience in the automotive sector gained during his time in Germany. Recognizing the inefficiencies and fragmentation within the auto parts supply chain, Maged saw an opportunity to address the challenges faced by local workshops and car mechanics in Egypt.
With the aim of bridging the information and technical gaps, Mtor initially focused on supplying spare parts to local workshops and managing logistics. Over time, the startup expanded its operations and formed partnerships with importers to facilitate distribution in the Egyptian market, which has a high demand for automotive after-sales parts.
Tackling Pain Points of Local Workshops
Mtor aims to resolve the pain points experienced by local workshops, including inaccurate fitment data, logistics and delivery challenges, parts availability, and price transparency. The startup aims to provide an intermediary platform that connects these workshops directly with importers, offering more efficient pricing than the traditional two-layer supply chain.
The local workshops can obtain the parts at a lower cost from Mtor, providing them with better quality and trustable parts. This approach strikes a balance between official dealerships, which offer higher prices, and local workshops that provide more affordable options.
Unlocking the Potential of Egypt’s Automotive After-Sales Market
Egypt’s automotive after-sales market is one of the largest in Africa and the MENA region, with a value exceeding $5 billion. The market consists of around 35,000 workshops and service providers servicing a fleet of 8 million vehicles. Mtor aims to tap into the potential of this market by offering a tech-enabled platform that streamlines the distribution of aftersales parts.
Empowering Independent Workshops for a Better Car Ownership Experience
Mtor differentiates itself from other platforms by focusing on business-to-business (B2B) customers, specifically local workshops and mechanics. By empowering these independent workshops, Mtor aims to enhance the car ownership experience by providing excellent quality service at affordable prices.
The startup plans to strengthen its partnerships with importers and parts suppliers as part of its future expansion strategy.
