Homzmart, an Egyptian-based marketplace startup, has secured $15 million in its Series A investment round.
In February 2020, the startup’s $1.3 million seed round was reported by Menabytes as one of the largest by an Egyptian startup. It, once again, surpasses previous records as it has now successfully closed the largest financing round in its sector in the Middle East and North Africa (MENA) region.
The company was founded in 2019 by Mahmoud Ibrahim, former COO of Daraz — an online marketplace and logistics company that operates in South Asia and Southeast Asia — and Ibrahim Mohamed, former Head of Logistics at Jumia. Still, it didn’t launch until the first quarter of 2020.
This round of financing is co-led by China’s MSA Capital — one of the investors in Homzmart’s seed round in February 2020, alongside Nuwa Capital. Other participants include Rise Capital, Impact 46, EQ2 Ventures, and Outliers Venture Capital.
Homzmart claims the Egyptian furniture market is historically characterised by poor customer accessibility and high distribution costs for retailers.
The startup’s business model, which involves collecting designs, price ranges, and other details of its retailers’ products, handles high distribution costs for them by providing access to consumers — homeowners and professionals — who have flexible financing options.
It creates a one-stop-shop, hassle-free experience for consumers who are easily connected to retailers such as IKEA and Home Centre.
Homzmart’s platform incorporates artificial intelligence to optimise furniture sellers’ content, with intelligent tools helping customers with purchasing decisions.
Homzmart currently showcases over 55,000 products from thousands of brands and merchants and claims to have 30x growth in sales. The online marketplace is tapping into the rapidly expanding $8 billion industry where 14 million customers in the region search online for furniture monthly.
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