Egypt-based furniture and home supplies marketplace Homzmart, has raised a $23 million pre-Series B round bringing its total funding to about $40 million.
Founded in 2020 by Mahmoud Ibrahim, former COO of Daraz, and Ibrahim Mohamed, former head of logistics at Jumia, Homzmart enables furniture suppliers and retailers to connect directly with consumers and transact through multiple payment solutions.
According to the company, it will use the new funding to expand services, especially logistics, and fill gaps that appear in supply chains, co-founder and CEO Mahmoud Ibrahim said in an interview with Reuters
In May last year, Homzmart raised a $15 million Series A round. Shortly after, it expanded to the Saudi market, which currently represents 25-30 per cent of its revenues.
The latest pre series B round funding round, which included participation from Riyadh-based technology venture capital fund STV, Impact46, Outliers Ventures, Rise Capital and NUWA Capital, brings its total funding to about $40 million.
Homzmart started by connecting brands and manufacturers with customers in the Arab world’s most populous country. But it found gaps in supply chains that prompted it to create a logistics arm, and now has about 100 trucks.
It also in March acquired Berlin-based home interior design firm MockUp Studio, which uses artificial intelligence to make designs.
Earlier this year the company’s activities expanded to Saudi Arabia, and Ibrahim said it had achieved solid growth there. “The percentage of activity in the Kingdom is now between 25% and 30% of the total volume of Homzmart business,” he said in the interview on Sunday.
The company says it serves 25 million houses in Egypt and Saudi Arabia, with more than 150,000 products on the platform.
Homzmart has not yet achieved profitability but Ibrahim said it is still focused on expansion and building market share “through lazer-focused profitability milestones”.