Egyptian Furniture Marketplace Homzmart Secures $23 million in Pre-Series B Round
Homzmart, an online marketplace for furniture and home goods located in Egypt, has raised a $23 million pre-Series B investment, increasing its total capital to roughly $40 million.
In 2020, former Daraz COO Mahmoud Ibrahim and former Jumia head of logistics Ibrahim Mohamed founded Homzmart, a platform that enables furniture suppliers and merchants to communicate with customers directly and conduct business using a variety of payment options.
Mahmoud Ibrahim, co-founder, and CEO, stated in an interview with Reuters that the company plans to utilize the extra cash to increase services, particularly logistics, and plug holes that develop in supply chains.
Homzmart raised a $15 million Series A investment in May of last year. Soon after, it widened its reach to the Saudi market, which now accounts for 25–30% of its sales.
The most recent pre-series B round investment round brought its overall funding to roughly $40 million and included participation from the Riyadh-based technology venture capital fund STV, Impact46, Outliers Ventures, Rise Capital, and NUWA Capital.
Homzmart began by establishing connections between businesses and consumers in the most populated nation in the Arab world. However, it discovered supply-chain holes, which led it to establish a logistics branch, of which it now has roughly 100 vehicles.
It also purchased Berlin-based MockUp Studio, a company that utilizes artificial intelligence to create designs, in March.
The company’s operations were expanded to Saudi Arabia earlier this year, and Ibrahim reported that business there was booming. In the interview on Sunday, he stated that “the percentage of activity in the Kingdom is now between 25% and 30% of the overall volume of Homzmart business.”
The company claims that it provides more than 150,000 products to 25 million homes in Saudi Arabia and Egypt.
Although Homzmart has not yet turned a profit, Ibrahim stated that the company is still concentrating on market share growth and expansion “via laser-focused profitability milestones.”
