Homzmart, an online retailer of furniture and home items, raised $23 million in one of the largest fundraising rounds for a start-up in the Middle East and North Africa during the previous year, according to the company’s chief executive.
According to co-founder and CEO Mahmoud Ibrahim, the firm, which was founded in 2020, will utilize the new financing to expand services, particularly logistics, and close gaps in supply chains.
The most recent pre-series B round investment round brought its overall funding to roughly $40 million and included involvement from the Riyadh-based technology venture capital fund STV, Impact46, Outliers Ventures, Rise Capital, and NUWA Capital.
After an early round in which it received roughly $2.5 million, it secured $15 million in a subsequent round that concluded in the second quarter of last year 2021.
Homzmart began by establishing connections between businesses and consumers in the most populous nation in the Arab world.
However, it discovered supply chain holes, which led it to establish a logistics branch, which now has roughly 100 vehicles. It also purchased Berlin-based MockUp Studio, a company that utilizes artificial intelligence to create designs, in March.
The startup’s operations were extended to Saudi Arabia earlier this year, and Ibrahim reported that business there was booming. According to him, between 25% and 30% of Homzmart’s whole business is currently conducted in the Kingdom.
The startup claims that it provides more than 150,000 products to 25 million homes in Saudi Arabia and Egypt. Ibrahim stated that although Homzmart has not yet attained profitability, it is still concentrating on market share increase and growth through laser-focused profitability benchmarks.
Purchasing items online would not have been feasible in the past. It would have been absurd to pay for something without first seeing, feeling, or even tasting it.
Nevertheless, as the Internet and digital technology have developed, users now choose to purchase goods online rather than in a physical store.
As a result, there are an increasing number of online furniture stores where customers can browse sizable catalogs. These provide a huge selection of fascinating furnishings.
It is all quicker and more simple with the internet. Furniture shopping has become simple. In fact, finding furniture, decorative items, lights, and numerous other things only a few clicks.
These online marketplaces, like Homzmart, are expanding and growing their furniture selection thanks to investments.
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