Egyptian furniture and e-commerce marketplace Homzmart said Monday that it raised $23 million in a Pre-Series B funding round to support the startup’s regional expansion program, bringing total investment in the company to $40 million.
The latest investment round, which included participation from Riyadh-based technology venture capital fund STV, Impact46, Outliers Ventures, Rise Capital and NUWA Capital, comes after the company’s expansion into Saudi Arabia earlier this year.
Homzmart said in a statement that the fresh funds follow the company’s $15 million funding round that closed in the second quarter of 2021, after an initial round in which it raised about $2.5 million.
“We are very proud of what the company achieved so far, we continue to be laser-focused on Homzmart’s vision of digitizing the whole home value-chain, empowering local and regional production capabilities with a clear impact on the region’s GDP, especially during the global macro economy situation,” Mahmoud Ibrahim, CEO and co-founder of Homzmart said in a statement.
A report by MAGNiTT shows that Egypt received the highest proportion of investment rounds of $1 million (39%) in Q1 2022 compared to its peer top MENA markets such as Saudi Arabia’s 19% and the UAE’s 35%.
Founded in 2019, Homzmart has achieved 300% year-on-year growth during the last year while serving more than 25 million households in Egypt and Saudi Arabia.
The e-commerce platform said that it will use the funds to solidify its mission to bolster the furniture shopping value-chain, which includes expanding the company’s regional footprint, launching Homzmart’s innovative interior design automation solution and increasing its digital showrooms across the MENA region.