• Series A Funding Success: Riyadh-based Soum, a leading secondhand product marketplace, has secured a substantial $18 million in Series A funding.
• Rapid Growth and Market Leadership:Launched less than two years ago, Soum’s app has rapidly gained traction, accumulating over 4 million downloads in the Kingdom of Saudi Arabia and expanding its influence in the United Arab Emirates.
• Strategic Expansion and Diversification: Soum’s Series A funding will serve as a catalyst for regional expansion, reaching beyond its current focus on secondhand electronics.
Riyadh-based Soum, a marketplace specializing in secondhand products, has secured $18 million in Series A funding, the company announced.
Jahez led this funding round, joined by Isometry Capital, along with continued support from existing investors Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital.
Launched less than two years ago, the Soum app has garnered over 4 million downloads in the Kingdom of Saudi Arabia (KSA) and is gaining momentum in the United Arab Emirates.
Co-founded by Fahad Al Hassan, Bader Almubarak, and Fahad Albassam, Soum has experienced remarkable growth since its seed round 18 months ago.
Soum has effectively established a groundbreaking unified national marketplace, facilitating transactions in over 150 Saudi cities.
This platform provides a trusted and convenient space for buying, selling, and discovering products.
The Series A funding will propel Soum’s regional expansion and extend its reach beyond the current focus on secondhand electronics, where it already holds market leadership in KSA.
By incorporating high-value categories for secondhand products, Soum aims to empower users to sell a diverse range of items, spanning from collectibles to automobiles, thereby tapping into a combined $40 billion market.
Fahad Alhassan, Co-Founder & CEO of Soum, expressed, “Soum was founded with a vision to be the marketplace to buy and sell anything online with convenience, trust and ease.” He emphasized that the success of this funding round reflects the dedication of the entire team and positions Soum for the next stage of growth.
Buyers and sellers in the MENA region have faced challenges with spam-ridden classified platforms. Soum acts as a trusted intermediary, ensuring seamless and secure transactions for both parties.
Abdulaziz Alhouti, Chief Investment Officer of Jahez, commented on the investment, stating, “We are impressed by the remarkable achievements of the Soum team. This investment is a testament to our confidence in Soum’s potential to redefine the e-commerce landscape in the Middle East.”
In Saudi Arabia, the market for secondhand electronics has experienced significant growth and transformation, reflecting shifting consumer preferences, economic considerations, and environmental awareness.
The emergence of a burgeoning secondhand electronics market in the Kingdom can be attributed to several factors such as technological advancements and rapid turnover.
The rapid pace of technological innovation has led to frequent upgrades and replacements of electronic devices. As consumers seek the latest models and features, a surplus of functional and relatively recent electronic gadgets becomes available for resale. This accelerated turnover has created a robust ecosystem for secondhand electronics.
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