Egypt social e-commerce startup Taager to expand offering with a $6.4M seed raise
Egypt leads in the number of internet users in MENA according to ITA. This number is set to hit 53.5 million by 2019. The bulk of such online transactions are in electronics, airline tickets, fashion, and entertainment. Social selling – a new frontier – is whereby a brand uses its social media channels to connect with prospective customers, developing relationships, and converting into sales. This form of selling is on the rise in Egypt, with an estimated 1.25 million sellers. Estimates put the social e-commerce space in Egypt at $14.8 billion by 2024.
A new player in the Egyptian e-commerce sector is Taager, has just announced a significant $6.4M seed round raise. The startup is on a mission to disrupt the online SME e-commerce sector in the 100-million-people Egyptian market by adopting a social e-commerce model. Sellers and traders get a complete suite of backend services in an end-to-end fashion that connects sellers and wholesalers through technology, AI, and data science enabling first-time sellers to scale their businesses with minimal ease. The company’s Gross Market Value (GMV) has thus far maintained a steady 40% monthly rise.
4DX Ventures (Pan-Africa Focused Venture Capital firm) led the round alongside participation from Raed Ventures (Saudi VC firm), Beco Capital (early stage UAE VC firm), Breyer Capital (global VC & PE firm), and individual investments from Magnus Olsson and Wael Nafee. Breyer Capital is mainly fixated on high-impact startups in the US and China markets and this marks its first investment in the MENA region.
In the press release, Mohamed Elhorishy (CEO & co-founder) described SMEs as “the engine of Egypt’s economy.” He also attributed the impact of the global pandemic to the acceleration of e-commerce in Egypt. With the collection of “ world-class talent” Mohammed expressed optimism that the business will have achieved major milestones in the coming months.
Peter Orth at 4DX Ventures shared comments on Taager’s raise describing them as “one of the most impressive teams in the ecosystem.”