In an era marked by a global shift towards sustainable consumption, the re-commerce sector is witnessing unprecedented growth as consumers increasingly turn to secondhand products to save money and reduce their environmental footprint. Soum, a Saudi Arabian-based platform launched in 2021, is at the forefront of this transformative trend and has recently secured a substantial $18 million in Series A funding to propel its expansion throughout the Middle East and North Africa (MENA) region.
The journey of Soum, which initially focused on electronics, has been nothing short of remarkable. Established in the Kingdom of Saudi Arabia, the platform has quickly gained traction, and with the infusion of fresh capital, it is poised to extend its footprint beyond national borders, targeting the United Arab Emirates as its first destination in the MENA expansion.
Leading the latest funding round is Saudi Arabia’s Jahez Group, a prominent player in the market, with participation from Isometry Capital based in New York. This round also sees continued support from existing investors Khwarizmi Ventures, AlRajhi Partners, and Outliers Venture Capital, underscoring the confidence in Soum’s potential. Notably, this funding comes on the heels of a successful $4 million seed funding round in 2021, emphasizing the continued interest and belief in Soum’s business model.
Fahad Al Hassan, one of the co-founders of Soum, expressed enthusiasm about the company’s growth prospects, stating, “We are actively broadening our presence across various regions, with a keen eye on the entire MENA region. Furthermore, we have initiated testing in new product categories, aligning with our vision of becoming a comprehensive platform where you can buy and sell a wide range of items, from phones to automobiles.”
The expansion plans into new territories are coupled with a strategic diversification of product categories. While Soum initially made a name for itself with its focus on electronics, the platform is now branching out to include items such as automobiles and collectibles, aiming to cater to a more diverse audience and capitalize on the growing demand for secondhand goods in various sectors.
“We aim to simplify and democratize the buying and selling process,” shared Al Hassan, leveraging his background as a former consultant at PwC and strategy manager at Saudi’s interior transformation ministry. This commitment to streamlining the user experience aligns with Soum’s overarching mission to provide a user-friendly, inclusive platform that resonates with consumers across different demographics.
Abdulaziz Alhouti, the Chief Investment Officer of Jahez Group, shed light on the evolving dynamics of the secondhand market. He remarked, “The secondhand market has traditionally been dominated by classifieds, which have served their purpose well. However, as we advance in the digital era, there is a growing need for a more convenient, frictionless, sustainable, and trust-building solution. This is precisely what Soum brings to the forefront.”
The infusion of capital not only facilitates Soum’s geographical expansion but also underscores the broader industry trend towards embracing sustainable and circular economies. As consumers increasingly prioritize environmentally conscious choices, re-commerce platforms like Soum offer a viable alternative to traditional retail, providing a platform for individuals to buy and sell pre-owned items.
Soum’s strategic approach extends beyond mere geographic reach and product diversification. The platform is committed to enhancing the overall customer experience by incorporating elements of convenience, sustainability, and trust. The shift towards a more comprehensive marketplace model reflects the evolving needs of consumers who seek a one-stop-shop for their secondhand shopping needs.
In conclusion, Soum’s $18 million Series A funding marks a significant milestone in the re-commerce sector, signifying not only the platform’s success but also the growing recognition of the importance of sustainable and circular economies. As Soum ventures into new territories and expands its product offerings, it is poised to play a pivotal role in shaping the future of re-commerce in the MENA region and beyond.
source: TechinAfrica