Get All Access for $5/mo

"We Got Funded!" KSA-Based Soum Raises US$18 Million In A Series A Round Led By Foodtech Unicorn Jahez Soum has already achieved four million downloads within Saudi Arabia and is already seeing traction in the UAE.

By Aalia Mehreen Ahmed Edited by Aby Thomas

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.

Soum
Bader AlMubarak, Fahad AlHassan and Fahad AlBassam, co-founders, Soum

Soum, a Saudi Arabia-based platform to buy and sell secondhand goods, has raised US$18 million in Series A funding round led by Jahez, a KSA-based online food-delivery unicorn.

The round also saw the participation of Isometry Capital, a US-headquartered next-generation asset management company. Some of Soum's existing Saudi-based investors that also took part in the round include Khwarizmi Ventures, a venture capital (VC) firm, Alrajhi Partners, a multi-asset class investment firm, and Outliers Venture Capital, an early-stage VC fund.

Founded by Fahad Al Hassan, Bader Almubarak, and Fahad Albassam, Soum is a platform that allows users to monetise their secondhand products by selling them while simultaneously allowing buyers to discover high quality pre-owned items. Since its seed round in 2021, the startup has delivered to and from 150+ cities in Saudi Arabia, and has built a novel unified national marketplace to safely buy, sell, and discover used products within the country.

In the past 18 months, Soum has also witnessed its sales grow by 40x, all while maintaining an impressive customer satisfaction score. With the app available on both the Apple App Store and Google Play Store, Soum has already achieved four million downloads within Saudi Arabia and is already seeing traction in the UAE. As per AlHassan, a combination of consumer and market trends have allowed Soum to enjoy these results.

"Increasing prices of goods, a growing awareness of personal financial planning as well as awareness about reducing waste are just some of the consumer trends that have contributed to Soum's rapid growth so far," AlHassan says. "On the other hand, market trends such as high adoption of e-payments and new regulations for open banking allowing quick and timely payouts to sellers driven -both of which were accelerated by the COVID-19 crisis- have been significant driving factors. Additionally, the recent development in last mile delivery has also significantly allowed for better customer experience within the industry."

Source: Soum

Jahez's investment in Soum will certainly be seen as a move that validates the latter's business vision- after all, having attained unicorn status in just five years of its launch, Jahez has been one of the biggest success stories to come out of Saudi Arabia in recent years. "We are impressed by the remarkable achievements of the Soum team, and find that their dedication to innovation and customer satisfaction aligns with Jahez's vision." says Abdulaziz Alhouti, Chief Investment Officer of Jahez. "This investment is a testament to our confidence in Soum's potential to redefine the e-commerce landscape in the Middle East."

With new funds to use, the startup will now aim to expand regionally, as well as beyond its core vertical of secondhand electronics. "The success of this funding round is a testament to the dedication of our entire team," AlHassan says. "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. We therefore hope to allocate these funds towards developing new products and services that can continue our stellar customer experience, while also expanding into different product categories and geographies."

Related: "We Got Funded!" UAE-Based Climatetech Startup Zeroe Raises US$2.2 Million Seed Round
Aalia Mehreen Ahmed

Features Editor, Entrepreneur Middle East

Aalia Mehreen Ahmed is the Features Editor at Entrepreneur Middle East.

She is an MBA (Finance) graduate with past experience in the corporate sector, and was also co-founder of CyberSWIFTT- an anti-cyberbullying campaign that ran from 2017-2018 as part of the e7: Daughters of the Emirates program.

Ahmed is particularly keen on writing stories involving people-centric leadership, female-owned startups, and entrepreneurs who've beaten significant odds to realize their goals.

Leadership

Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Side Hustle

The Side Hustle He Started in His College Apartment Turned Into a $70,000-a-Month Income Stream — Then Earned Nearly $2 Million Last Year

Kyle Morrand and his college roommates loved playing retro video games — and the pastime would help launch his career.

Business Plans

The Essential Guide to Writing a Business Plan

Here's the no-nonsense guide on how to write a business plan that will help you map success for your startup.

Leadership

Emirati Women's Day 2022: Meet 10 Female Trailblazers From The UAE Who Are Championing Innovation And Entrepreneurship In The Country

The UAE was ranked number one across Arab nations in the World Economic Forum's Global Gender Gap Report 2022.

Business News

These 11 Famously Disgraced CEOs Have Entered the Reputation Hall of Shame

McDonalds' Steve Easterbrook is just the latest chief executive who allegedly failed to recognize the importance of ethics and permanently damaged their reputation. Here are the lessons companies can learn from each of them.

Starting a Business

The Major Players You'll Work With When Running an Import/Export Business

Before you dive in and launch an import/export business, find out just who and what agencies you'll need to work with to make your business a success.