Homzmart, the Middle East’s leading furniture and home goods marketplace platform, will expand its operations into the Kingdom of Saudi Arabia (“KSA”) in the coming week.
In 2021, Homzmart has experienced remarkable growth, with its Egyptian business tripling in size between January and October.
Many leading international brands, as well as the entire KSA ecosystem, including brands like Al Rugaib Furniture and Al-Motlaq Furniture, as well as local artisans and workshops, will cooperate with the company’s KSA platform.
General ecommerce in Saudi Arabia is developing at a rapid rate of 35 percent per year, making it one of the fastest growing markets in the Arab world. Homzmart will enter a $15 billion market with a ten percent annual growth rate and several million households, many of whom demand fast online access to furniture, textiles, and household appliances.As part of its national housing development programme, Saudi Arabia has a large pipeline of new houses to be built.
Homzmart’s debut into the Saudi market complements the company’s current operations in Egypt and creates a huge new market opportunity, given the country’s high household expenditure.
Homzmart is expanding in response to a clear and tangible demand from consumers in Saudi Arabia who desire a hassle-free, one-stop-shop shopping experience for furniture and home goods. Consumers in the Kingdom of Saudi Arabia also desire access to tens of thousands of products from a diverse range of brands and merchants, as well as flexible financing options, which Homzmart provides.
“This exciting news about our entry to the $15 billion Saudi Arabian market shows we are executing our stated strategy to expand regionally. We have always said how the market opportunity in the region is significant, and how Homzmart’s business model is perfectly set up for it.” Homzmart’s CEO and co-founder, Mahmoud Ibrahim, said:
“We have been growing hugely in the last ten months, with operations having tripled in size as we keep up with consumer demand. The new normal is that convenience wins and furniture is one of last sectors in the Kingdom to digitize. KSA consumers and SMEs want this convenience now, and we are delighted to offer it to them.”
Given the market opportunity, Homzmart’s KSA management team includes individuals who have held top positions at McKinsey & Company, Uber, Amazon, MAF, Justlife, and Jollychic, among others.
Homzmart’s user-friendly platform uses Artificial Intelligence to optimize furniture sellers’ content, as well as intelligent tools to help buyers in making purchasing decisions. Homzmart’s philosophy also includes supporting SMEs and assisting them in bringing their items to market through Homzmart’s platform.
The company’s rapid expansion is the result of a successful $15 million Series A funding round, which was the largest round in this sector in the MENA region to date, completed in May. MSA Capital and Nuwa Capital led the funding. MSA Capital is a global investment firm with over $1.5 billion in assets under management. Rise Capital, Impact46, EQ2 Ventures, and Outliers Ventures were among the other investors.