Riyadh-based secondhand marketplace, Soum, has successfully raised $18 million in a Series A funding round. The funding is led by Jahez, with participation from Isometry Capital and existing investors Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital.
Having experienced remarkable growth since its seed round 18 months ago, Soum has seen a 40-fold increase in sales, driven by robust unit economics and maintained high customer satisfaction scores. The Soum app, launched less than two years ago, has garnered over 4 million downloads in Saudi Arabia and is gaining traction in the UAE. The recent funding will propel Soum’s regional expansion and broaden its offerings beyond its primary focus on secondhand electronics, where it currently holds market leadership in Saudi Arabia.
Soum has established itself as a pioneering unified national marketplace, facilitating the buying, selling, and discovery of products across 150+ cities in Saudi Arabia. The funding will support Soum’s goal to include high-value categories for secondhand products, allowing users to sell items ranging from collectibles to automobiles, tapping into a combined $40 billion market.
Fahad Alhassan, Co-Founder & CEO of Soum, expressed enthusiasm about the funding round, stating, “Soum was founded with a vision to be the marketplace to buy and sell anything online with convenience, trust, and ease. The success of this funding round is a testament to the dedication of our entire team. With the backing of the region’s leading investors, we are excited to kick-off our next stage of growth, while continuing on our mission to transform how customers buy and sell online.”
Buyers and sellers in the MENA region often grapple with navigating spam-infested classified platforms. Soum addresses this challenge by acting as a trusted intermediary for each transaction, ensuring a seamless and secure process for both parties involved.
Abdulaziz Alhouti, Chief Investment Officer of Jahez, expressed admiration for Soum’s achievements, saying, “We are impressed by the remarkable achievements of the Soum team. Their dedication to innovation and customer satisfaction aligns with Jahez’s vision. This investment is a testament to our confidence in Soum’s potential to redefine the e-commerce landscape in the Middle East.”
With the Series A funding as a catalyst, Soum is poised for continued growth, aiming to set new standards in innovation, customer satisfaction, and market impact in the Middle East. Soum was founded by Fahad Al Hassan, Bader Almubarak, and Fahad Albassam.