The global recommerce market is poised to grow as consumers more and more Some settle for second-hand goods to save costs and observe conscious consumption. The global recommerce market is expected to continue into the future. growth Markets like Saudi Arabia are growing rapidly soom aims to reach users in the Middle East and North Africa (MENA) region.
Soum was founded in 2021 in the Kingdom of Saudi Arabia and is currently aiming to expand its growth to other MENA countries, starting with the United Arab Emirates. The plan is fueled by recent $18 million Series A funding.
The round was led by Saudi Arabia’s Jahez Group, with participation from New York-based Isometry Capital, along with existing investors Khwarizmi Ventures, AlRajhi Partners, and Outliers Venture Capital. This follows the acquisition of $4 million in seed funding in 2021.
Beyond expansion, the startup, which features electronics in its top list, is also increasing the categories it covers by including products such as cars and collectibles.
“We are expanding into different regions and are looking at the entire MENA region.To realize our vision of being the place to sell everything from mobile phones to cars, we are developing new We have also started testing categories.” Fahad Al Hassanco-founder of Soum bader al mubarak and Fahad Albassam.
“We want to make buying and selling easier and accessible to everyone,” said Al Hassan, who previously worked as a consultant at PwC and as a strategic manager at the Saudi Ministry of Internal Affairs and Reform. .
Abdulaziz Alhouti, chief investment officer of Jahez Group, the parent company of Jahez, a Saudi food delivery platform that went public in 2021, commented on the round to TechCrunch: It’s a good job, but as the digital age advances, we need something more convenient, frictionless, sustainable, and reliable. This is the preposition that Soum brings to the table. ”
Soum manages the entire process from listing to delivery. Shipping is supported by third-party logistics partners. To list a product, sellers must submit images of the product for pre-approval. The startup also processes and holds payments until the buyer confirms receipt as a fraud precaution.
Al Hassan said that most products take three to four days to be delivered, and if users are not satisfied with the product, they can initiate a return within 24 hours. The company plans to extend the return period for some products to one week or even one month.
The startup makes money through commissions every time a product is sold. Prices are determined based on a variety of factors, including supply and demand.
“The commission is 10-20% of the product price. The more valuable the product, the lower the percentage, and the more frequent the seller, the lower the percentage. Therefore, multiple factors are taken into account,” Al Hassan He said, adding that more than 30,000 properties are listed on Sumu every month. iPhones and laptops are the best-selling products.
Al Hassan expects further growth for the company as the adoption of indigenous solutions continues and Saudi Arabia promotes local solutions to break away from dependence on international markets. Additionally, the country is said to be in the midst of a technology boom, with data showing a rapid increase in the number of e-commerce transactions. business and the spread of electronic services.
Source: techcrunch.com
