An up-and-coming Egyptian electronic furniture trading company is making its way into the Arab markets |

Cairo – An Egyptian start-up specializing in selling furniture and home appliances online is trying to make its way into the Arab markets, taking advantage of the digital shopping boom that has become a prominent feature among consumers in the Middle East and North Africa.

Homesmart revealed on Sunday that the total investment in it has increased to about $40 million, after closing a financing round last month, during which it raised $23 million.

The company raised $15 million in a previous round that closed in the second quarter of last year, which followed an initial round in which it raised about $2.5 million.

This company provides an online home shopping experience by finding solutions for brands, manufacturers and customers. Through its online platform, it says its business combines technology, artificial intelligence and logistics to provide a seamless experience for consumers.

Mahmoud Ibrahim: Homesmart is considering expansion to three more countries in the region

Mahmoud Ibrahim, co-founder and CEO of Homesmart, confirmed that the latest investment round was attended by the Saudi Technology Ventures Company (STV) and current investors including Impact 46, Outliers Venture Capital, Rise Capital and Nawah Capital.

“The company will use the new funding to support plans to expand services, especially logistics, and fill the gaps that occur in supply chains,” he said in an interview with Reuters.

Ibrahim explained that Homesmart, which launched in 2020, started as a link between brands, manufacturers and customers, but it found gaps in supply chains that prompted it to develop logistics services in addition to customers requesting services to help complete interior designs.

“We currently have around 100 trucks on the road carrying the Homesmart brand as we try to fill any gaps in the supply chains and customer demand for interior design services has prompted us to provide this service and we are constantly developing it,” he said.

In March, Homesmart acquired Berlin-based interior design firm Mok.up Studio, which uses artificial intelligence to automatically measure and design space.

Ibrahim said the search is ongoing for “good opportunities” to make acquisition deals or create units.

The company’s activities expanded to Saudi Arabia earlier this year, and the co-founder of Homsmart confirmed that he has achieved strong growth there.

“After achieving strong growth in Egypt, we expanded into Saudi Arabia, where the percentage of activity in the Kingdom reached between 25 and 30 percent of the total volume of Homsmart’s business,” he said.

The company is considering expansion in three other countries in the region, but Ibrahim declined to name these countries due to the rapid change in global macroeconomic data.

Ahmed Al Nuaimi: We are excited to support the company to build an integrated e-commerce building

Homesmart, whose services are available in about 20 Egyptian governorates, combines online sales and display of products at traditional fairs.

The company’s officials adopt a strategy based on the display of products via the Internet, while providing exhibitions for those who want to preview the products on the ground before returning to the implementation of online purchases.

Ibrahim said: “We are approaching the launch of three exhibitions in Cairo, and that there will be other exhibitions in succession.”

The countries of the Middle East are characterized by the presence of a large segment of young people who represent the largest category of consumers, in addition to the increasing popularity and improvement of the Internet infrastructure, which suggests that the Arab region is about to ‘ an unprecedented boom in digital shopping.

In view of the level of economic development, the consumption capacity of the population, the rate of Internet penetration and other factors, there are countries such as Saudi Arabia, the UAE, Egypt and Kuwait that lead the Arab countries in the development of e-commerce .

“Homsmart has proven itself as a platform that bridges the gap between manufacturers and consumers, empowering and expanding local suppliers,” said Ahmed Al Nuaimi, partner at STV.

“We are excited to support Mahmoud (Ibrahim) and the Homesmart team in their steps to build an integrated e-commerce building in the MENA region,” he added.

The company has yet to post positive profits, but Ibrahim said it is still focused on leaving a strong footprint and gaining a large market share in a short time, so the benchmark it has is to have healthy to achieve growth of activity with the aspiration to achieve profitability as soon as possible.

He explained that Homesmart has received offers to acquire it, but he believes that the time is not right to accept such offers or to list on the stock exchange.

He said: “The furniture market in Egypt has recently witnessed a state of recovery, supported by the increased demand for the real estate market, despite the decline in the Egyptian currency since March 2022.”

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