Homzmart — the Middle East’s one-stop shop for furniture and home goods — landed a Pre-Series B investment of $23m recently, bringing its total investments up to almost $40.
The latest fund included the participation of STV — the region’s largest technology VC fund — along with other prominent investors, such as Impact46, Outliers Ventures, Rise Capital, and NUWA Capital
The investment comes after the company’s solid expansion to Saudi Arabia earlier this year, accessing a $15bn-market that is growing at 10% CAGR per annum.
With more than 45,000 products in its catalogue, Homzmart placed a huge focus on empowering the local Saudi furniture manufacturing sector, doubling down on the 2030 Saudi Vision.
The fresh funds follow Homzmart’s initial $17m funding round that was held halfway through 2021. The capital will be used to solidify Homzmart’s mission of optimising the furniture-shopping value-chain. This includes expanding the company’s regional footprint, launching Homzmart’s innovative interior design automation solution (after acquiring Berlin based Mock-up Studio), increasing digital showrooms across MENA, and further developing the company’s logistics operations.
Furthermore, the company achieved 300% y-o-y growth in 2021. It also serves more than 25m households between Egypt and Saudi with over 150,000 unique products in catalogue from the region’s leading brands, factories, and artisans.
Recently, Homzmart launched its digital showrooms chain in Egypt to tap into the online-offline-online (OOO) strategy, target more consumer segments, and engage with customers directly.
“We are very proud with what the company has achieved so far, we continue to be laser-focused on Homzmart’s vision of digitising the whole home value-chain, empowering local and regional production capabilities with clear impact on the region’s GDP, especially during the global macroeconomic situation. The company will keep investing in its healthy growth, especially after achieving great milestones towards its vision,” said Homzmart’s Co-Founder and CEO Mahmoud Ibrahim.
For his part, Ahmad Al-Naimi — General Partner at Saudi Venture Capital company STV — asserted that “MENA’s homeware and furniture market is a $80bn opportunity that is offline and fragmented.”
“Homzmart has established itself as the de-facto platform to close the gap between manufacturers and consumers and enable and scale local suppliers. We’re excited to back Mahmoud, Ibrahim, and the Homzmart team as they build the next MENA e-commerce giant.”