The Middle East’s furniture and home goods marketplace Homzmart will expand into Saudi Arabia in the coming week, accessing a $15 billion market, and the e-commerce platform plans to grow 10 percent a year.
Cairo-based Homzmart has grown rapidly in 2021, with operations in Egypt tripling from January to October, a statement from the company said. The company’s growth follows its $15 million Series A funding round, completed in May.
“The new normal is that convenience wins and furniture is one of last sectors in the Kingdom to digitise. Saudi consumers and SMEs want this convenience now, and we are delighted to offer it to them,” Homzmart’s CEO and co-founder, Mahmoud Ibrahim, said.
General e-commerce in the kingdom is growing extremely fast – 35 percent a year – one of the fastest growth rates in the Arab world. Household expenditure in Saudi Arabia is significant, and new research found that individuals in the kingdom plan to spend 20 percent more on average post-pandemic.
“The expansion is driven by Homzmart reacting to clear and tangible demand from KSA consumers who want a hassle-free, one-stop-shop shopping experience for furniture and home goods,” a statement from the company said.
Homzmart’s platform incorporates Artificial Intelligence to optimise furniture sellers’ content, with tools helping customers with purchasing decisions. Core to Homzmart’s philosophy is also empowering SMEs and helping them bring products to market, via Homzmart’s platform.
Homzmart’s Series A round was led by MSA Capital, a global investment firm with over $1.5 billion in assets under management, and Nuwa Capital. Other participating investors included Rise Capital, Impact46, EQ2 Ventures, and Outliers Venture Capital.
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