Homzmart, the Middle East's online shopping for furniture and home goods, has recently got a Pre-Series B investment of $23 million recently, bringing its total funding up to $40 million, its chief executive said on Monday. The investment comes after the company's solid expansion to Saudi Arabia earlier this year, accessing a $15 billion market that is growing at 10 percent CAGR per annum. The company will use the new investment to expand logistics services and fill gaps in supply chains, CEO Mahmoud Ibrahim said. The latest funding round has included participation from Riyadh-based technology venture capital fund STV, Impact46, Outliers Ventures, Rise Capital and NUWA Capital. It raised $15 million in an earlier round that closed in the second quarter of 2021, after an initial round in which it raised about $2.5 million. Homzmart main purpose to link between brands and manufacturers with customers in the Arab world's most populous countries. However, the company found shortage in supply chains that spurred it to establish a logistic arm consists now of almost 100 trucks, Ibrahim said, adding that it working in developing customers' demand for interior design services to provide this service. In March the company 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 Ibrahim said it had achieved solid growth there. Homzmart has not yet achieved profitability but Ibrahim said it is still focused on expansion and building market share through laser-focused profitability milestones.
