By Karim Hussein, Managing Partner at Algebra Ventures

At Algebra, we have long believed that technology has the promise to reduce market inefficiencies across a broad range of consumer markets. The automotive aftersales market in Egypt is particularly inefficient and poorly served. It takes far too long for mechanics and car owners to find the right parts, ensure proper fitment, and determine fair prices. Suppliers are in the thousands and frequently stock a very limited number of parts. On the other hand workshops and mechanics have limited parts inventory and limited working capital to complete complex repairs. This basically leads to a miserable experience for car owners when their car breaks down or needs maintenance.

We have reviewed over six startups attempting to address these inefficiencies over the last few years but none have been successful at understanding and unlocking the unique challenges in this space.  There are over 400,000 SKUs that are required to have a reasonable supply base to cover automotive repair in Egypt. That suggests any marketplace must find the right mix of suppliers to cover that broad product range.  There are also far fewer products ~10,000 SKUs that are faster moving inventory required for routine maintenance (e.g., lubricants, spark plugs, wiper blades etc…)  In addition, terminology is very confusing in automotive parts and part numbers and shapes may vary from one model year to another further complicating the matching process.

We were delighted to meet the founders of Mtor in early 2022, who clearly understood the inefficiencies of the market but also had a solid understanding of the complexities of effectively serving the market. From day one, they focused on solving the challenges of workshops and mechanics while also understanding the market dynamics of the supplier base. They developed simple tools for mechanics to place orders and describe the parts they needed – building an interface that was intuitive and easy to use. They also ensured that suppliers had flexibility in pricing and presenting their inventory on a per transaction basis. This allowed rapid adoption from both suppliers and mechanics.   Mtor also understood the complexity of fitment data and the necessity to build a parts and fitment engine tailored to the language and practices of the local market and the existing supplier base. Finally, Mtor had built up their service in a limited geography initially to ensure they could bring the right level of supply and provide customer support staff on the ground assisting both sides of the market and solving their pain points.

With that solid business model and the young and talented team in place, all that was required was the right amount of capital to further fuel the growth and development of Mtor. We led a round in 2023 and continued to support the team in building out their platform and geographic coverage in Cairo and beyond. There have been several adjustments to the model throughout, all governed by the relentless focus of Mtor’s leadership team on satisfying the needs of their growing mechanic base.

I personally had two major repairs on my Jeep in the last year (one of which was a serious accident where I thankfully escaped without injury). I immediately asked my mechanic to use Mtor for procurement and was shocked by the rapid turnaround of my car, which was back on the road in less than 48 hours after significant repairs and replacements to the rear suspension system, body panels, a bent axle and a broken differential. All of these are difficult components to source in Egypt (it’s a ten year old car that I still hang on to dearly) but I was pleasantly surprised with the super rapid turnaround at a reasonable cost.

I know there are thousands of similar experiences out there and I feel Mtor has found the right formula and technology infrastructure to enable mechanics to get the right parts they need rapidly at a fair price and for car owners to get their cars back on the road.

I can’t wait to see the future products and services that Mtor will bring to market to make my and other car owner’s maintenance fast, easy and reasonably priced. I am also certain Mtor will help improve the quality of automotive repair and increase income for mechanics as they no longer waste time hunting for parts and can handle a higher repair volume.

Overall it’s all about making the automotive aftersales market fast, liquid and efficient.