Homzmart, Egypt’s furniture, and home supplies marketplace has secured a $23 million pre-Series B round to continue its market expansion and product development as well as improve its logistics operations, according to the company’s co-founder and CEO, Mahmoud Ibrahim in an interview.
The pre-series B funding round welcomed participation from Riyadh-based technology venture capital fund, STV, Impact46, Outliers Ventures, Rise Capital, and NUWA Capital. The $23 million raised from the pre-Series B round brings Homzmert’s total funding to about $40 million.
The e-commerce platform raised a $15 million Series A funding round led by China’s MSA Capital in the second quarter of last year, to consolidate on its already impressive growth over rate, as well as expand its business operations across the MENA region. This was after an initial round in which it raised about $2.5 million.
Mahmoud Ibrahim, former COO of Daraz, and Ibrahim Mohamed, former head of logistics at Jumia founded Homzmart in 2020. Homzmart has revolved from connecting brands and manufacturers with customers in the North African biggest economy into a full-blown furniture and home supplies marketplace which enables furniture suppliers and retailers to connect directly with consumers and transact through multiple payment solutions.
Also, in March, it successfully acquired the Berlin-based home interior design firm, MockUp Studio, which uses artificial intelligence to make designs.
In the same vein, the e-commerce platform, expanded to Saudi Arabia early this year, and according to its CEO, the firm had already recorded solid growth there. “The percentage of activity in the Kingdom is now between 25% and 30% of the total volume of Homzmart business,” says Ibrahim.
The company says that it is serving over 25 million houses in Egypt and Saudi Arabia, with more than 150,000 products on the platform.
Although Homzmart is yet to achieve profitability, Ibrahim said it is still focusing on expansion and building market share “through laser-focused profitability milestones”.