Taager to fuel acceleration with $6.75 million funding. Image Credits: Taager
Egypt’s social eCommerce platform, Taager, has landed $6.75 million in a pre-Series B funding round. The funding found was led by Norrsken22, a tech growth fund focused on Africa, along with existing investors like BECO Capital, 4DX Ventures, RAED Ventures, and Breyer Capital, and new backers Endeavor Catalyst and Beltone VC. This investment signals increased investor interest in the growing social commerce sector within the Middle East and North Africa (MENA) region.
Taager was founded in 2019 to provide a platform that will help individuals launch and scale their own online businesses by managing product sourcing, warehousing, shipping, and payment collection. The company currently operates in Saudi Arabia, Egypt, the UAE, and recently expanded into Iraq. Taager boasts of having empowered over 45,000 merchants and facilitated sales to millions of consumers.
According to industry calculations, social e-commerce in the MENA region surpassed $14 billion, representing over 30% of all e-commerce sales. Globally, the market is projected to reach $2.5 trillion by 2025. This points to the significant growth the region’s social commerce market has experienced, a trend fueled by high social media penetration and a preference for shopping through trusted networks.
Taager seeks to solve the problems of complex supply chains, limited access to capital, and difficulty reaching a broad customer base faced by social sellers. The startup’s platform offers a wide array of tools and services which includes access to a product catalog, data-driven insights into pricing and marketing, logistics support, and embedded financing options.
“Our mission is to empower anyone to start and scale a profitable social e-commerce business. We’re particularly focused on enabling women, young people, and low-income earners to achieve financial independence.” said Mohamed Elhorishy, co-founder and CEO of Taager. Taager claims to have increased the profitability of its merchants by an average of 2.5 times.
Nivesh Pather, Principal at Norrsken22, commented, “Taager is redefining e-commerce in the MENA region by empowering thousands of entrepreneurs. The team has demonstrated an exceptional ability to scale profitably across multiple markets, including Saudi Arabia. We are excited to partner with them in their next phase of growth.”
The funding will be used to accelerate Taager’s expansion across the MENA region, capitalizing on the rapid growth of online shopping through social media platforms. The company’s managing director in Dubai, Mohamed Tarek, recently joined Taager after his previous venture, Egyptian fintech Cassbana, faced difficulties. Mr. Tarek’s experience in scaling e-commerce businesses, including his own online brand Aroura, is expected to be a valuable asset to Taager as it expands its operations in the region.
While some startups have faced challenges in securing funding in the current economic climate, investors remain optimistic about the long-term potential of the region’s digital economy.
