Homzmart – the Middle East’s one-stop-shop for furniture and homewares – recently landed a pre-Series B investment of $23 million, bringing its total investments to almost $40.
The latest fund included participation from STV – the region’s largest technology venture capital fund – as well as other leading investors, such as Impact46, Outliers Ventures, Rise Capital and NUWA Capital.
The investment comes after the company’s strong expansion into Saudi Arabia earlier this year, tapping into a $15 billion market that is growing at a CAGR of 10% annually.
With over 45,000 products in its catalog, Homzmart has focused on empowering the local Saudi furniture manufacturing sector, doubling down on the Saudi Vision 2030.
The new funds follow Homzmart’s initial $17 million funding round held in mid-2021. The capital will be used to solidify Homzmart’s mission to optimize the furniture purchasing value chain. This includes expanding the company’s regional footprint, launching Homzmart’s innovative interior design automation solution (following the acquisition of Berlin-based Mock-up Studio), increasing rooms exhibition venues in the MENA region and the development of the company’s logistics operations.
Additionally, the company achieved 300% year-on-year growth in 2021. It also serves over 25 million households between Egypt and Saudi Arabia with over 150,000 unique catalog products from leading brands. , factories and artisans in the region.
Recently, Homzmart launched its digital showroom chain in Egypt to leverage the online-offline-online (OOO) strategy, target more consumer segments and engage directly with customers.
“We are very proud of what the company has achieved so far, we continue to focus on Homzmart’s vision of digitizing the entire home value chain, building local production capabilities and regions with a clear impact on the region’s GDP, especially during the global macroeconomic situation. The company will continue to invest in its healthy growth, especially after achieving significant milestones towards its vision,” said Homzmart co-founder and CEO Mahmoud Ibrahim.
For his part, Ahmad Al-Naimi – general partner of Saudi venture capital firm STV – asserted that “the MENA region homewares and furniture market is an $80 billion opportunity that is offline and fragmented”.
“Homzmart has established itself as the de facto platform for bridging the gap between manufacturers and consumers and enabling and scaling local vendors. We are excited to support Mahmoud, Ibrahim and the Homzmart team as they build the next e-commerce giant in the MENA region. »