The Fashion Empire (TFK), an Egyptian e-commerce marketplace for fashion, beauty and home accessories, announced today that it has raised $2.6 million in seed funding led by CVentures, an Egypt-based corporate venture -Capital company, raised. A15an early-stage VC in the MENA region that has backed companies like Esaal, Paymob and Helios Investment Partners subsidiary TPay have made a follow-up investment, according to TFK.
Fadi Antaki, co-founder and CEO of TFK, founded the company in January 2020 with Marianne Simaika and Karim Abd El Kader. Six months later, they launched the e-commerce platform. Antaki is also a general partner at A15. Antaki noticed the need for a platform that sells fashion products in Egypt with fast deliveries, multiple payment methods and a recommendation function. This opportunity led the Chief Executive to use what he learned growing up in a family with a long history in the clothing business to bring TFK to market.
“We started the company before COVID. And back then, we saw a huge gap, or maybe a lack of focus, in a place dedicated to selling fashion products, dressing recommendations, fast deliveries, and multiple payment methods. Nobody focused on that, especially in the fashion industry,” Antaki said.
TFK deals with a range of products – footwear, beauty, personal care, accessories, home fashion, etc. – that cater to different demographics. The platform helps local and international brands increase their sales online through its curated marketplace, which offers customers an omnichannel experience: one place for shoppers to find all their fashion needs and swap out products when needed.
There are over 200 brands on the TFK platform, growing 10-15% month over month. It has more than 150,000 customers; Each month, about 40% of sales come from returning customers.
The platform not only hosts products from all these brands for customers to view and purchase, but also offers them additional services. TFK offers a virtual fitting room that helps brands get used to their customers’ sizes and recommend customers outfits for different occasions. Additionally, the “360 Value Proposition” for brands includes offering a one-stop-shop solution that includes operations, co-marketing and digital content creation services.
“Earlier this year we realized that one of the most important areas to focus on was brand. There are good quality, good price brands that don’t have the know-how to sell online. They need a lot of support with operations, fulfillment, warehousing, as well as digital production and photography,” said the CEO. “So besides selling their products, we help them with the different aspects that they can then sell well online, be it supporting the operations or the marketing side. And for us, it’s not just about reselling their products, but also acting as their digital partners.”
The fashion e-commerce platform generates revenue via the traditional model where a markup is counted on products and a shipment model where a commission is charged. Supporting revenue streams come from additional services it offers to the brands, such as photography and marketing. The company’s total sales volume increased three-fold from April 2021 to April 2022, Antaki confirmed.
In 2021, the value of the global fashion e-commerce market was nearly $700 billion. By the end of 2022, it is projected to surpass that number, reaching around $1.2 trillion in three years. According to Statista, the total addressable market in Egypt is approximately $4.2 billion. As there is no clear leader in the Egyptian fashion e-commerce space, Antaki says his company is poised to become one due to its branding advantage and stay ahead of the likes of DressCode, Brantu and Gahez.
“We have two key differentiators. One of them is the omnichannel experience. The second is not just being a reseller, but rather being a partner to brands and helping them become sustainable and even grow their business through our platform and other services we can offer,” he said.
Other investors on the round include Lotus Capital, Raba Capital, Sunny Side Venture Partners, Foundation Ventures, The Cairo Angels and fashion industry veterans Paul Antaki and Nasser Chourbag.
According to the company, TFK will use the investment to accelerate its growth, build scalable technology and expand its team, whose female employees make up 43% of the company’s total workforce and 50% of its managers. “We intend to meet talent needs, build our technology, optimize our operations and end customer experience. So basically the allocation of funds to tech, talent and operations,” added the CEO.
The Fashion Kingdom, an Egyptian fashion e-commerce startup, raises $2.6M in seed funding – TechCrunch Source link The Fashion Kingdom, an Egyptian fashion e-commerce startup, raises $2.6M in seed funding – TechCrunch