Egypt’s Mtor, an online auto parts marketplace, has secured $2.8 million in pre-seed funding led by MENA-focused venture capital firm Algebra Ventures. The funding round also saw participation from Dutch Founders Fund (DFF), Aditum Ventures, LoftyInc Capital, and various local and global angel investors, as announced by the startup.
Founded in April 2022 by Mohamed Maged, Mtor addresses inefficiencies and fragmentation in the auto parts supply chain and aftermarket in Egypt. Drawing from Maged’s experience in the automotive sector gained in Germany, the startup initially focused on supplying spare parts to local workshops, managing logistics, and forming partnerships with importers to facilitate distribution in the Egyptian market.
The automotive after-sales market in Egypt, one of the largest in Africa and the MENA region, exceeds $5 billion, catering to an aging fleet of 8 million vehicles. Mtor aims to alleviate pain points for local workshops, addressing issues such as inaccurate fitment data, logistics challenges, parts availability, and price transparency. The platform acts as an intermediary connecting local workshops directly with importers, offering more efficient pricing than traditional supply chains.
Mtor has served over 2,500 workshops, fulfilling more than 70,000 orders in the past year and a half. The platform operates on a margin model tied to the parts themselves, with standardized pricing that includes free delivery. It has formed partnerships with over 60 importers and employs a tech-enabled distribution model to enhance efficiency.
The startup’s Mechanic app, designed for local workshops, facilitates ordering, provides insights into compatible aftersales parts, and manages the redirection of parts between inventories. Mtor plans to strengthen partnerships with significant importers and parts suppliers, doubling down on attracting more mechanics monthly with the recent funding.
Mtor differentiates itself by focusing on B2B customers, empowering independent workshops to provide quality service at affordable prices. While other platforms like Odiggo and Mecho Autotech operate in the automotive space, Mtor sees them as complementary rather than direct competitors. The startup plans to use the new investment to expand in Egypt and beyond, with the support of Algebra Ventures.
