“Egypt’s Mtor Secures $2.8 Million Pre-Seed Funding for its Online Auto Parts Marketplace

Egyptian online auto parts marketplace, Mtor, has raised $2.8 million in pre-seed investment led by the Egypt-focused venture capital firm Algebra Ventures.

Other participants in the funding round include Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various local and global angel investors, as stated by the startup in a press release.

Founded by Mohamed Maged in April 2022, Mtor addresses inefficiencies and fragmentation in the auto parts supply chain, with a focus on local workshops and car mechanic spaces.

Maged, inspired by his experience in the German automotive sector, identified the challenge upon returning to Egypt in 2020 after working with the B2B e-commerce marketplace MaxAB. He held two head of expansion roles at MaxAB before launching Mtor.

In an interview with TechCrunch, Maged explained that he recognized the inefficiency of global suppliers who lack knowledge about local workshops and service providers.

Given Egypt’s limited spare parts manufacturing, there exists a significant information and technical gap, not only in distribution but also in terms of new products.

Initially concentrating on supplying spare parts to local workshops and managing logistics, Mtor expanded its operations over time, forming partnerships with importers to facilitate distribution in the Egyptian market, home to thousands of local service providers and millions of cars in need of maintenance and aftermarket parts.

Egypt’s automotive after-sales market, one of the largest in Africa and the MENA region, exceeds $5 billion in value. With an aging fleet of 8 million vehicles, car owners spend an average of $600+ annually across 35,000 workshops and service providers, underscoring the untapped potential within Egypt’s automotive after-sales market.

Mtor addresses pain points for local workshops, solving issues such as inaccurate fitment data, logistics and delivery challenges, parts availability, and price transparency.

The startup aims to bridge the gap for car owners caught between official dealerships, where prices are higher, and local workshops offering more affordable options.

Operating on a margin model primarily tied to parts themselves, Mtor provides standardized pricing and derives its take rates or margins from this pricing, which includes free delivery.

Over the past year and a half, Mtor has served over 2,500 workshops, fulfilling more than 70,000 orders. On the supply side, it has formed partnerships with over 60 importers.

Beyond being a tech-enabled distribution arm, Mtor establishes a robust feedback loop involving data, parts information, and pricing points.

Its Mechanic app, targeted at local workshops, facilitates ordering and provides insights into compatible aftersales parts.

The app also manages the redirection of parts, whether to Mtor’s inventory or the importers’, enhancing efficiency and collaboration within the automotive aftermarket.

Mtor’s focus on B2B customers distinguishes it from platforms connecting car owners with service providers. The startup positions itself as an intermediary, connecting local workshops directly with importers, offering better quality and trustworthy parts at more affordable prices.

This approach aims to provide a needed balance between official dealerships and local workshops, including logistics and on-demand product delivery.