$18 million in financing for SOM to expand its reach in the Middle East and North Africa region
The global recommerce market is witnessing growth as consumers increasingly opt for pre-owned items to save on costs and embrace conscious consumption.
With the anticipation of continued growth in the global recommerce market, platforms like Soum in Saudi Arabia are aiming to attract users in the Middle East and North Africa (MENA) region.
Founded in the Kingdom of Saudi Arabia in 2021, Soum is now planning to expand its growth into other MENA countries, starting with the United Arab Emirates.
This expansion is fueled by the recent $18 million Series A funding round led by Saudi’s Jahez Group, with participation from New York-based Isometry Capital and existing investors Khwarizmi Ventures, AlRajhi Partners, and Outliers Venture Capital.
This follows a $4 million seed funding round in 2021.
In addition to geographical expansion, Soum, known for its focus on electronics, is diversifying its product categories to include items such as automobiles and collectibles.
Fahad Al Hassan, co-founder of Soum along with Bader Almubarak and Fahad Albassam, stated, “We are expanding into different geographies and are looking at the whole 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 automobiles.”
The platform manages the entire process from product listing to delivery, with third-party logistics partners supporting the delivery services.
Sellers are required to send images of their items for pre-approval before listing, and Soum processes and holds payments until buyers confirm receipt to prevent fraud.
Al Hassan mentioned that most products take three to four days for delivery, and users have a 24-hour window to initiate returns if the products are unsatisfactory.
Soum is considering extending the return period to a week or even a month for certain products.
Soum generates revenue through commissions on each item sold, with the commission rate determined by factors such as supply and demand.
Al Hassan explained, “The commission ranges between 10 and 20% of the product value.
The higher the product value, the lower the percentage, and the more frequent the seller, the lower it becomes; so, multiple factors are considered.
” Soum receives over 30,000 listings every month, with iPhones and laptops being the top-selling products.
Al Hassan anticipates significant growth for the company, driven by the increasing adoption of local solutions and Saudi Arabia’s push for reliance on local platforms rather than international marketplaces.
The country is currently experiencing a tech boom, with data indicating a surge in the number of e-commerce businesses and the uptake of e-services.