The re-commerce landscape in the Middle East and North Africa (MENA) region is set to witness significant growth with Soum, a Saudi Arabian C2C marketplace, securing an impressive $18 million in a recent Series A funding round. The funding, led by Saudi’s Jahez Group and joined by Isometry Capital, Khwarizmi Ventures, Alrajhi Partners, and Outliers Venture Capital, marks a strategic move for Soum to expand its presence beyond Saudi Arabia, starting with the United Arab Emirates.
Founded in 2021, Soum has quickly become a major player in the re-commerce market, capitalizing on the global trend of consumers opting for pre-owned goods. With the influx of funds, Soum is not only eyeing geographic expansion but also diversifying its product categories. While electronics currently dominate its listings, the platform plans to include automobiles and collectibles, aiming to be a comprehensive marketplace for a wide range of items.
Fahad Al Hassan, co-founder of Soum, expressed the company’s vision, stating, “We want to make buying and selling easier and accessible to everyone.” Al Hassan, formerly a consultant at PwC and a strategy manager at Saudi’s interior transformation ministry, highlighted the importance of Soum’s role in offering a convenient, frictionless, and sustainable solution to the second-hand market.
Soum manages the entire transaction process, from listing to delivery, with its delivery arm supported by third-party logistics partners. Sellers undergo a pre-approval process for item images, and payments are held until buyers confirm receipt to prevent fraud. The platform, which currently receives over 30,000 listings monthly, charges a commission based on factors such as product value, supply, and demand, ranging from 10 to 20%.
Abdulaziz Alhout, Chief Investment Officer of Jahez Group, emphasized Soum’s unique proposition in the re-commerce space, stating, “The preposition that Soum brings to the table is more convenient, frictionless, sustainable, and ensures trust.”
With plans to extend its return period and a focus on enhancing user experience, Soum anticipates continued growth, leveraging the increasing adoption of homegrown solutions in the MENA region. The platform’s expansion aligns with Saudi Arabia’s push for local solutions, reflecting the broader tech boom and rising interest in e-commerce businesses and e-services in the country. As Soum paves the way for a more inclusive and diverse re-commerce marketplace, its recent funding round positions it as a key player in shaping the future of the industry in the MENA region.
