Homzmart, e-commerce platform for home furniture, home décor, lighting and home supplies, closed a Series B round worth $23 million, funded by venture capital firms STV, Impact 46, Outliers Ventures, Rise Capital and NUWA Capital.
The Egyptian-based platform will use the financing to expand services, with a focus on its logistics.
Homzmart also intends to fill gaps in its supply chain, which previously caused problems and led the platform to create a logistics arm and purchase 100 trucks.
In May, Homzmart expanded its commercial operations to Saudi Arabia, aiming to expose Egyptian furniture manufacturers and brands to the regional market and develop the platform’s volume of regional trade.
In addition, Homzmart intended to capitalise on the kingdom’s furniture industry, which is estimated to top $334.7 million by the end of the year and $585.4 million by 2025, rising at a compound annual growth rate of 20.48 per cent, according to market research firm Statistsa.
“The percentage of activity in the kingdom is now between 25 per cent and 35 per cent of the total volume of Homzmart business,” Mahmoud Ibrahim, co-founder and CEO of Homzmart, told Reuters.
Last May, the e-commerce platform received $15 million in a Series A funding round from Omani-based investment firm MSA Global, bringing its total funding to approximately $40 million to date.
Founded in 2020, Homzmart has since tripled its operations, keeping pace with their consumers’ demands.
Digitisations of their operations has accelerated and improved logistics services by 80 per cent and reduced costs by 30 per cent.
Homzmart’s commercial headquarters are stationed near Damietta, the Middle East’s hub for furniture manufacturing.
The platform offers more than 150,000 homeware products from numerous retailers, including IKEA and Home Centre, and has served 25 million houses in Egypt and Saudi Arabia.