It was personal need that drove Nour Sabri to come up with idea for BorrowMe, a peer-to-peer marketplace based in the UAE. When he was moving apartments, Sabri needed tools and had to buy new ones although he was not going to use them much.
Less than a year into launching the startup, Sabri said it is doing well with 1,100 listed items and 12,00 site visits.
In an interview with Arabian Business, Sabri outlines his funding journey and expansion plans for BorrowMe.
How the idea for BorrowMe came about?
When I was moving into a new apartment back in January 2020, I needed some tools to get the place ready. There was no option to borrow these items, so I was forced to buy them.
Fast forward to the Covid-19 pandemic. When all fitness centers in the UAE were closed, and I needed exercise equipment to keep myself in shape, I faced a similar dilemma. There was no place where I could borrow this equipment, so once again, I was forced to make purchases, this time even more expensive than the last.
This impressed upon me the need for a lender/borrower platform. Suddenly I thought, why not create a peer-to-peer marketplace where people can get what they need and rent what they are not using? At this very moment, BorrowMe.com was born.
What was the market need for it?
Many factors contributed to the need for a service like BorrowMe.
People have less spending power these days, and many have lost their jobs entirely because of the pandemic. Even before Covid, there was a lack of rental options for everyday items. Also, the amount of waste due to manufacturing has been increasing exponentially for decades. And finally, many people have limited storage space to put new items. These problems can all be addressed by promoting the use of a peer-to-peer lending platform like BorrowMe.
How has the response been so far?
Since launching in August 2021, we have achieved the following: 30 registered businesses, 1,100 listed items, 12,000 site visits, and a signed agreement with Dubai’s largest Airbnb management company.
How has the pandemic impacted the response, especially when it comes to an increased awareness on sustainability?
People still seem to be a bit reluctant to meet with others face-to-face while BorrowMe’s business model is dependent on this sort of interaction.
We anticipate a much higher volume once the pandemic is not a factor anymore.
What is your business model?
Initially, BorrowMe will be offering free listings to generate interest. Then, in year 2, a 20 percent commission will be charged on every transaction. Businesses will have the option of advertising themselves, or specific items, in targeted categories. We will set up dark rental stores to directly rent fast-moving and popular items through BorrowMe. In addition, we will be using third party logistics companies for delivery and sanitising services.
Walk me through your funding journey: how the initial funds were raised and would you consider series funding?
I funded BorrowMe.com from my own savings. Before I got the first investment from anyone, I was down a significant amount of money. I was fortunate I had good savings to develop the company. I probably could have gone through another round of my own funding, but at the end of that, I would have been like, “How long can I keep this up? I need monetary support”.
I then secured an angel investor and am now seeking $500 thousand in additional funds. We will use them on technology, marketing, and operations.
What are your expansion and growth plans?
BorrowMe will initially operate in the UAE and then expand to other countries in the GCC. The business potential is enormous, especially when considering expanding to all GCC countries.
What advice you would give young entrepreneurs?
Believe in your idea and make sure it has a contribution factor beyond just making money. Be willing to take risks but make sure they are calculated risks. Finally, pick the right team members to help you on this enjoyable yet challenging journey.
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