Mtor, an Egyptian online auto parts marketplace, has secured $2.8 million in pre-seed funding led by Algebra Ventures, with participation from Dutch Founders Fund, Aditum Ventures, LoftyInc Capital, and other investors. Founded by Mohamed Maged in April 2022, Mtor aims to address inefficiencies in the auto parts supply chain and aftermarket, particularly targeting local workshops and mechanics. Drawing from Maged’s experience in the automotive sector, the startup initially focused on supplying spare parts and managing logistics. As it expanded operations, Mtor formed partnerships with importers to facilitate distribution, catering to Egypt’s vast market of local service providers and car owners.
Egypt’s automotive after-sales market, valued at over $5 billion, stands as one of the largest in Africa and the MENA region, driven by an aging fleet of 8 million vehicles. With car owners spending an average of $600+ annually across 35,000 workshops and service providers, the market presents significant untapped potential. Mtor, at its core, addresses the pain points of local workshops by tackling issues such as inaccurate fitment data, logistics challenges, parts availability, and price transparency. The startup aims to bridge the gap between official dealerships, known for higher prices, and local workshops offering more affordable options. Despite concerns over quality, especially amid global economic challenges, Mtor serves as an intermediary, utilizing its tech platform to connect workshops directly with importers, facilitating smoother transactions and addressing market inefficiencies.
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