The global resale market is poised for growth as consumers more and more settle for used goods for cost savings and as some observe conscious consumption. With the global remarketing market expected to continue development boom, markets like Saudi Arabia’s Sum looking to attract users in the Middle East and North Africa (MENA) region.
Soum was founded in the Kingdom of Saudi Arabia in 2021 and is now looking to expand growth to other MENA countries, starting with the United Arab Emirates. Plans are driven by recent $18 million in Series A funding.
The round was led by Saudi Arabia’s Jahez Group with participation from New York-based Isometry Capital alongside existing investors Khwarizmi Ventures, AlRajhi Partners and Outliers Venture Capital. This is followed by $4 million in funding in 2021.
Apart from the expansion, the startup, whose top listings are electronics, is also increasing the categories it covers to include products like cars and collectibles.
“We are expanding into different geographies and looking at the entire MENA region. We have also started testing new categories to fulfill our vision of being a place where you can sell everything from phones to cars,” he said. Fahad Al Hassanwho co-founded with Soum Bander Almubarak and Fahad Albasam.
“We want to make buying and selling easier and accessible to everyone,” said Al Hassan, who previously worked as a consultant at PwC and director of strategy at Saudi Arabia’s Ministry of Internal Transformation.
Commenting on the round, Abdulaziz Alhouti, chief investment officer of Jahez Group, the parent company of Jahez, the Saudi food delivery platform that will go public in 2021, told TechCrunch: “The second-hand market has been completely dominated by classifieds and they have done it well. work, but as we move into the digital age, we need to see something that is more convenient, frictionless, sustainable and that ensures trust. That’s the intent that Schum brings to the table.”
Soum manages the entire process from listing to delivery. Deliveries are supported by third party logistics partners. For product listing, sellers must send images of their items for pre-approval. The startup also processes and holds payments until buyers confirm receipt, as a fraud precaution.
Al Hassan said most products take three to four days to be delivered and users have 24 hours to initiate returns if the products are not satisfactory. It has plans to extend the return period to a week or even a month for some products.
The startup makes money through commissions for each item sold. The fee is based on a number of factors, including supply and demand.
“The commission varies between 10 and 20% of the value of the product. The higher the value of the product the smaller the percentage and the more frequent the seller the less it becomes. So many factors are taken into account,” Al Hassan said, adding that Soum receives more than 30,000 listings every month. iPhones and laptops are the best selling products.
Al Hassan expects more growth for the company as the adoption of domestic solutions continues and following Saudi Arabia’s push for local solutions to move away from dependence on international markets. Besides, the country is said to be in the midst of a technology boom, with figures showing an increase in e-commerce numbers businesses and the uptake of electronic services.
