CVentures, a corporate venture capital firm based in Egypt, led the seed funding for The Fashion Kingdom. A15 is an early-stage VC in the MENA region that has backed the likes of Esaal, Paymob and TPay.
The company was founded in January 2020 by Fadi and two other people. Six months later, they launched the e- commerce platform. There is a general partner at A15. There is a need for a platform that sells fashion products with fast deliveries, different payment methods, and a recommendation feature in Egypt. The chief executive was born into a family that has been in the apparel business for a long time, so he was able to use his knowledge to launch the company.
The company was established before the birth of Communism. There was a lack of focus on selling fashion products, recommendations for what to wear, quick deliveries, and different payment methods. There was no one focused on this in fashion.
There are a variety of products that cater to different demographic. The platform helps local and international brands grow their sales online through theircurated marketplace that is a place where shoppers can find all their fashion needs and exchange products when needed.
Over 200 brands are on the platform. 40% of its sales are from returning customers.
ancillary services to them are provided by the platform and include products of all these brands. brands get accustomed to their customers' sizes and recommend outfits to customers for different occasions with the help of a virtual fitting room. Offering a one-stop-shop solution for operations, co-marketing, and digital content creation services is one of its offerings.
The brand was the most important area we thought we needed to focus on. Good quality and cheap brands don't have the know-how to sell online. The CEO said that they need a lot of support. Besides selling their products, we help them with the different aspects that would then be able to sell well online, either supporting the operation or the marketing side. They are going in as their digital partners as well.
The traditional model of revenue for the fashion e-commerce platform involves a mark-up of products and a commission. Additional services provided to the brands include photography and marketing. The company's sales volume increased by 3x.
The global fashion e- commerce market value was $700 billion in 2011. It is expected to surpass that figure by the end of the year. The total addressable market in Egypt is over four billion dollars. With no clear market leader in Egypt's fashion e- commerce space, the company is set to become one and stay ahead of other players because of its edge with brands.
There are two main things that differentiate us. One of the things is the omnipresence. Being a partner to brands and helping them become sustainable and even grow their business through our platform and other services is what the second is about.
Other investors in the round include Lotus Capital and Raba Capital.
42% of the entire workforce and 50% of the company's managers are women and the company will use the investment to accelerate its growth. We intend to fill in the needs in terms of talent, technology, and operations. The CEO said that the funds would be used in tech, talent, and operations.
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