Egyptian on-line auto components market Mtor has raised $2.8 million in pre-seed funding led by MENA-focused enterprise capital agency Algebra Ventures. Different traders that participated within the spherical embrace Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital and different native and international angel traders, the startup stated in an announcement.
Mtor’s founder and CEO, Mohamed Maged, established the startup in April 2022. His inspiration for the enterprise emerged from years spent in Germany, the place he gained precious expertise within the automotive sector. Upon returning to Egypt in 2020, Maged joined the B2B e-commerce market MaxAB, holding two distinct head of growth roles earlier than departing to launch Mtor.
In an interview with TechCrunch, Maged described how he acknowledged a major problem in addressing inefficiencies and fragmentation throughout the auto components provide chain and the automotive aftermarket, particularly specializing in native workshops and automobile mechanic areas. “I obtained the concept for Mtor earlier than coming to Egypt,” he stated. “I labored in automotive a bit and noticed the inefficiency of world suppliers figuring out nothing about native workshops or native service suppliers. Egypt itself doesn’t manufacture that many spare components, so there’s a massive data and technical hole not solely when it comes to distribution however when it comes to new merchandise.”
Initially, Mtor, whose management crew consists of Maged alongside CTO Khaled Kandil, COO Mohamed Altaf and VP of Technique Moaz El Megharbel, centered on supplying spare components to native workshops and managing logistics. Over time, the startup expanded operations, forming partnerships with importers to facilitate distribution in an Egyptian market dwelling to hundreds of native service suppliers and thousands and thousands of vehicles needing upkeep and aftersales components.
L-R: Mohamed Maged (CEO), Khaled Kandil (CTO), Mohamed Altaf (COO) and Moaz El Megharbel (VP Technique)
Egypt’s automotive after-sales market, among the many largest in Africa and the MENA area, exceeds $5 billion in worth. With an getting older fleet of 8 million automobiles, automobile homeowners spend a mean of $600+ yearly throughout 35,000 workshops and repair suppliers, emphasizing the untapped potential inside Egypt’s automotive after-sales market.
At its core, Mtor addresses the ache factors of those native workshops, resolving points similar to inaccurate fitment information, logistics and supply challenges, components availability and worth transparency. The startup additionally goals to bridge the hole for automobile homeowners dealing with a dilemma between official dealerships, the place costs are two to 3 instances greater, and native workshops providing extra reasonably priced choices. Regardless of the potential compromise on high quality at native workshops, particularly throughout international financial challenges, Mtor acts as an middleman, leveraging a tech platform to attach these workshops immediately with importers.
Historically, importers ship bulk orders to massive wholesalers, who, in flip, distribute to native mechanics by way of a number of layers of suppliers. Mtor simplifies this course of, providing extra environment friendly pricing than the normal two-layer provide chain.
“A neighborhood mechanic would get the components from the present provide chain for 10,000 Egyptian kilos however can get it from Mtor for 8,000-8,500 Egyptian kilos as a result of we function an environment friendly type of provide chain from importers to Mtor’s two warehouses in Cairo and Giza after which to those mechanic workshops,” stated Maged. “We’re one thing in between that may uplift these workshops utilizing a tech platform that connects them immediately with the importers, and on the identical time, giving them higher high quality and trustable components that might then give kind of the wanted steadiness between each worlds together with offering logistics and supply of the merchandise on demand.”
The 2-year-old on-line auto components market operates on a margin mannequin primarily tied to the components themselves. The enterprise runs on standardized pricing and derives its take charges or margins from this pricing, which incorporates free supply.
Over the previous yr and a half, Mtor has served over 2,500 workshops, fulfilling greater than 70,000 orders. On the provision aspect, it has fashioned partnerships with over 60 importers.
Past being a tech-enabled distribution arm, Mtor establishes a strong suggestions loop involving information, components data and pricing factors. Its Mechanic app, focused at these native workshops, facilitates ordering and gives insights into appropriate aftersales components. The app additionally manages the redirection of components, whether or not to Mtor’s or the importers’ stock, enhancing effectivity and collaboration throughout the automotive aftermarket.
Mtor’s concentrate on B2B prospects is a departure from platforms that operate as marketplaces connecting automobile homeowners with service suppliers. A notable instance is YC-backed Odiggo, an Egyptian startup that originally operated on this class earlier than pivoting to Sully.ai, an AI crew specializing in automating healthcare duties. Equally, the Nigerian auto offers market Mecho Autotech initially operated as a business-to-consumer market earlier than not too long ago branching into the wholesale distribution of aftersales components.
Whereas Odiggo’s new enterprise focus and Mecho’s totally different market positioning make them non-direct opponents, Mtor, in accordance with Maged, doesn’t see different B2C gamers as opponents, recognizing that serving auto sellers entails extra frequent orders and better return charges in comparison with direct prospects within the spare components enterprise.
“They merely complement our mannequin as a result of the service suppliers are the mechanics. The primary goal of Mtor is to empower impartial workshops to supply automobile homeowners wonderful high quality service at reasonably priced costs. The fitting method to do that is to empower these mechanics, which is able to trickle right down to a greater expertise for the automobile proprietor not solely in lead time but in addition within the high quality of the components and even the value he pays,” added the CEO.
Along with not too long ago making hires in management and operational roles, Maged says the startup has targeting growing merchandise that entice extra mechanics month-to-month. Its future technique will contain doubling down on this strategy off the again of the brand new funding it has obtained. He remarked that the startup plans to strengthen partnerships with important importers and components suppliers.
“We’re delighted to associate with Mtor’s founders and crew, who’ve constructed an revolutionary enterprise that solves a major ache for mechanics, auto components suppliers and automobile homeowners,” stated Karim Hussein, managing associate at Algebra Ventures on the funding. “Mtor’s distinctive visible and voice interface coupled with a classy fitment and components matching engine eliminates the hours spent day by day by mechanics looking for the suitable half on the proper worth. We stay up for supporting Mtor on growth in Egypt and past.”
