Mtor, an Egyptian online marketplace for auto parts, has secured $2.8 million in pre-seed funding with Algebra ventures.
Egyptian online auto parts marketplace Mtor has successfully secured $2.8 million in pre-seed funding. The funding was primarily supported by Algebra Ventures, a venture capital firm focused on Egypt. Other investors participating in the funding round include the Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various local and global angel investors.
Founded in April 2022 by Mohamed Maged, who gained valuable experience in the automotive sector while in Germany, Mtor aims to revolutionize the auto parts industry in Egypt.
The startup initially focused on supplying spare parts to local workshops and managing logistics operations. However, it has gradually expanded its operations. Now, the auto parts supplier has entered into strategic collaborations with importers to facilitate distribution in the Egyptian market.
Egypt’s automotive after-sales market, one of the largest in Africa and the MENA region surpasses $5 billion in value. Mtor business addresses the challenges faced by local workshops. Some of these challenges are inaccurate fitment data, logistical hurdles, parts availability, and price transparency.
The platform acts as an intermediary, connecting workshops directly with importers. And provide a more efficient pricing model than the traditional two-layer supply chain.
Mtor’s success over the past 18 months includes serving over 2,500 workshops and fulfilling more than 70,000 orders. On the supply side, the company has established partnerships with over 60 importers. Operating on a margin model tied to the parts themselves, Mtor utilizes standardized pricing and offers free delivery.
The startup employs a tech-driven approach, utilizing the mechanic app for local workshops, streamlining the ordering process and providing insights into compatible aftersales parts. The app also manages the redirection of parts, enhancing collaboration and efficiency within the automotive aftermarket.
What is next for Mtor and the auto parts business model after the pre-seed funding?
Mtor’s strategic focus on B2B clientele sets it apart from other platforms. The strategy emphasizes its commitment to empowering independent workshops and providing car owners with quality service at affordable prices.
Going forward, the young startup plans to strengthen partnerships with significant importers and parts suppliers. It also intends to leverage the new investment to support expansion within Egypt and beyond.
Algebra Ventures’ managing partner, Karim Hussein, expressed excitement about partnering with Mtor. In his statement, he acknowledged the innovative business that addresses significant pain points for mechanics, auto parts suppliers, and vehicle owners.
Obinabo Tochukwu Tabansi is a supply chain mastro and writer with a decade of experience working in different facets of the supply chain. Today he is living his passion for writing on all things supply chain. His blog, Supply Chain Nuggets, is Africa’s fastest-rising supply chain blog, helping professionals, business owners, and curious minds navigate the supply chain complexities on the continent.
