Homzmart, a furniture and home goods marketplace platform in the Middle East, has closed a US$15 million Series A funding round to help it accelerate its expansion
MSA Capital, a multinational investment company with over US$1.5 billion in assets under management, and Nuwa Capital led the capital raise.
Rise Capital, Impact46, EQ2 Ventures, and Outliers Ventures are among the other investors. The investment brings Homzmart’s total capital raised to $17.2 million.
The COVID-19 pandemic, according to MSA Capital general partner Ben Harburg, revealed the Middle East’s archaic offline retail ecosystem, logistics, and supply chain’s serious vulnerabilities and inefficiencies.
Homzmart was created in late 2019 by Mahmoud Ibrahim, the former COO of Daraz, and Ibrahim Mohammed, the head of Jumia’s logistics in Egypt, to make furniture discovery and shopping easier for Egyptian customers.
Customers benefit from the Egyptian startup’s huge selection of furniture choices and sellers, while sellers benefit from Homzmart’s technology and marketplace, which makes it simple to increase their consumer base.
Its user-friendly platform uses artificial intelligence (AI) to optimize furniture sellers’ content, as well as intelligent tools to assist consumers in making buying decisions.
“We’ve taken advantage of the opportunity to digitize furniture and home goods shopping. “The market potential in the area is enormous, and our business model is well suited for it,” said Mahmoud Ibrahim, Homzmart’s CEO and co-founder. Homzmart offers a simple one-stop-shop platform for furniture sellers and customers to transform their experiences, and we are really excited about our next stage of development. We are excited to have completed this round of funding. It will help us accelerate our geographic expansion and carry out our strategy of consolidating the entire value chain. I’d like to express my gratitude to all of our investors for their support.”
“Homzmart stepped into the gap as the next generation, digitally powered online marketplace and optimized logistics provider for large item retail, serving both consumer and business customers,” Ibrahim explained.
Homzmart’s platform and end-to-end solutions benefit both retailers, such as IKEA and Home Centre, by making it easier for them to reach customers, and shoppers, who benefit from a hassle-free, one-stop-shop shopping experience and more convenient financing choices.
After securing a US$15 million Series A funding round, the startup has increased revenues by a factor of 30 in the last year, showcasing over 55,000 products from thousands of brands and merchants, and is now preparing to expand across the MENA country.
Read more on Tech Gist Africa: