Egypt’s automotive aftermarket, online auto parts marketplace Mtor has raised $2.8 million in a pre-seed investment round.
The funding was led by Algebra Ventures, an Egypt-focused venture capital firm, with participation from Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various local and global angel investors.
Founded by Mohamed Maged in April 2022, Mtor aims to streamline the auto parts supply chain, addressing inefficiencies and fragmentation. Maged, drawing inspiration from his experience in the German automotive sector, identified a gap in the Egyptian market regarding distribution, information, and technical knowledge of spare parts.
Initially focusing on supplying spare parts to local workshops and managing logistics, Mtor has expanded its operations over time. The company formed strategic partnerships with importers, and now facilitates the distribution of auto parts in a market with thousands of local service providers and an extensive fleet of 8 million vehicles.
The Egyptian automotive after-sales market, valued at over $5 billion, presents a vast opportunity for Mtor. With an aging vehicle fleet, car owners spend an average of $600 annually, highlighting the considerable potential within the market. Mtor aims to address pain points for local workshops, such as fitment data inaccuracies, logistics challenges, parts availability, and price transparency.
One of Mtor’s key differentiators is its role as an intermediary, connecting local workshops directly with importers through its tech platform. By doing so, Mtor seeks to bridge the gap between official dealerships, where prices are higher, and local workshops that offer more affordable options, albeit with potential compromises in quality.
The startup operates on a margin model tied primarily to the parts themselves, ensuring standardized pricing and providing free delivery. In the past 18 months, Mtor has successfully served over 2,500 workshops, fulfilling more than 70,000 orders. The business has established partnerships with over 60 importers.
Mtor’s Mechanic app enhances efficiency and collaboration within the automotive aftermarket. The app facilitates ordering, provides insights into compatible aftersales parts, and manages the redirection of parts between Mtor’s inventory and importers, creating a robust feedback loop.
Unlike some platforms in the market, Mtor focuses on B2B customers, specifically targeting mechanics rather than connecting car owners with service providers. Maged notes that while other B2C players in the market complement Mtor’s model, the startup doesn’t see them as direct competitors.
Mtor plans to utilize the newly acquired funding to strengthen partnerships with major importers and parts suppliers. The startup’s unique visual and voice interface, coupled with a sophisticated fitment and parts matching engine, has garnered support and enthusiasm from investors.
Karim Hussein, Managing Partner at Algebra Ventures, expressed excitement about supporting Mtor’s expansion in Egypt and beyond, recognizing the innovative solutions it brings to mechanics, auto parts suppliers, and vehicle owners.
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