Egypt-based furniture and home supplies marketplace Homzmart has raised a $23 million pre-Series B round from STV, Impact46, Outliers Ventures, Rise Capital, and NUWA Capital.
The company, launched in 2020, will use the new funding to expand services, especially logistics, and fill gaps that appear in supply chains.
The latest pre-series B round funding round brings its total funding to about $40 million. It raised $15 million in an earlier round that closed in the second quarter of last year, after an initial round in which it raised about $2.5 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.
In March it 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 co-founder cum CEO Mahmoud 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 an 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”.
