Taager Raises $6.4M to Revolutionize Egyptian Social E-commerce

The Expanding Landscape of Social E-commerce

The global social commerce sector is experiencing substantial growth. Egypt, in particular, boasts over 1.25 million online social sellers, and its social e-commerce market is projected to exceed $14.8 billion in value by 2024.

Taager Secures Seed Funding

Taager, a social e-commerce platform focused on providing comprehensive logistics solutions for online merchants, has announced the successful completion of a $6.4 million seed funding round.

This investment was spearheaded by 4DX Ventures, a Pan-African venture capital firm. Additional participation came from Raed Ventures, Beco Capital, Breyer Capital, and several private investors, including Magnus Olsson, a co-founder of Careem. This marks Breyer Capital’s inaugural investment within the MENA region, bringing Taager’s total funding to over $7 million since its launch in December 2019.

Addressing Fragmentation in Social Commerce

Social media platforms, including Facebook, Instagram, and TikTok, have simplified advertising for merchants seeking to connect with potential customers. A robust network of last-mile delivery companies exists for product distribution.

However, a significant gap remains for new merchants – a lack of seamless integration between these processes. They often encounter challenges when initiating their businesses and managing product delivery, highlighting the need for a fully streamlined end-to-end system.

The Challenges Faced by New Online Merchants

“If I were an undergraduate aspiring to launch my own e-commerce store, I would need to determine product sourcing, shipping methods, storage solutions, fulfillment processes, financing options, and delivery logistics,” explains CEO Mohammed Elhorishy, outlining the complexities new merchants face.

Traditionally, merchants have had to independently negotiate agreements with various suppliers and then separately with shipping and last-mile delivery services.

Taager's Solution: A One-Stop Platform

Elhorishy emphasizes that Taager empowers individuals who previously lacked the resources to establish their own businesses. By utilizing Taager, they can achieve the same outcomes as those who would have navigated the complex processes independently.

Taager operates as a B2B platform, offering a comprehensive solution for both online merchants and suppliers. The platform delivers a suite of integrated services, encompassing operational and logistical infrastructure like warehousing and shipping, alongside an online marketplace that connects sellers with wholesalers.

The company leverages artificial intelligence and data science to minimize risk for first-time sellers, enabling them to launch and scale their online ventures. Taager provides transparent pricing and a curated product selection, allowing sellers to concentrate on business management while Taager handles all operational aspects.

Streamlining the Sales Process

Merchants can source products from suppliers through Taager, then create compelling product listings with images and descriptions for platforms like Facebook, TikTok, and Instagram.

“Merchants can then focus on their marketing expertise – advertising and campaign management. Once an order is placed, it’s submitted to our platform, and Taager manages the entire fulfillment cycle,” the CEO explains. “This allows merchants to start and scale a business, from a single order to thousands daily, without needing to manage inventory, stock, or cash flow.”

Data-Driven Insights for Growth

Taager earns a margin on each sale and collects valuable data points. This data is then utilized to recommend popular products to merchants and optimize pricing strategies.

Elhorishy explains that while Taager doesn’t directly engage in the sale of merchant products, the data-driven insights it provides serve as a catalyst for growth, complementing the warehousing and last-mile delivery services.

A Technology and Data-Focused Approach

“The process unfolds in stages. Reaching critical data thresholds allows us to suggest relevant products to merchants,” Elhorishy states. “We view ourselves primarily as a technology and data company with a strong on-the-ground presence to facilitate fulfillment. Our goal is to automate operations as much as possible.”

Current Performance and Future Expansion

Currently, Taager reports having 5,000 merchants on its platform, contributing to a 40% month-over-month increase in Gross Merchandise Value (GMV). While the number of suppliers remains undisclosed, onboarding them initially presented challenges.

These suppliers, numbering in the hundreds, were attracted by Taager’s competitive pricing and access to a large merchant base, facilitating faster product sales. Additionally, Taager provides valuable insights to help suppliers expand their product offerings and streamline imports.

Overcoming Early Challenges

“Suppliers now actively seek our input on market needs, a significant shift from the initial challenges we faced, where they were unfamiliar with this type of partnership,” Elhorishy notes. “Managing last-mile operations was another early hurdle, but we’ve since built dedicated teams to manage relationships with a diverse range of delivery companies.”

Capital Deployment and Regional Expansion

With a high-margin business model, Taager intends to allocate the new capital to support its rapid growth. The company is actively hiring across all departments and plans to expand its operations throughout the MENA region.

Industry Enthusiasm and Future Prospects

The growth of social e-commerce, both globally and within MENA, has generated significant excitement. Jim Breyer of Breyer Capital recognizes this potential and is impressed by Taager’s traction in the market. He believes Taager is well-positioned to replicate its data-driven approach and achieve further growth across the region.

Taager’s growth trajectory was instrumental in securing investment from its lead investor. Peter Orth, co-founder and managing partner at 4DX Ventures, stated, “The Taager team has achieved remarkably impressive results with incredible speed and assembled one of the most outstanding teams in the ecosystem. Their dedication to quality, execution, and a unique approach to empowering e-commerce entrepreneurs is a winning combination. We are excited to partner with them in the next phase of their journey.”