Mona Ataya posing next to some of the products offered on Mumzworld. (Image via Mumzworld)
Mumzworld announced yesterday it had closed a Series B funding round with a multi-million dollar investment led by Wamda Capital, twofour54, and Endeavor Catalyst, along with additional investors including Precinct Partners and WSB Holding.
Several pre-existing investors also increased their stake in the company.
CEO Mona Ataya declined to disclose the size of the investment, but said the company raised 40 percent more than they were looking for.
The mother, baby and child ecommerce website, which is also an Endeavor UAE entrepreneur company, will focus on expansion across the region and an enhanced superior customer experience.
“This is a strategic round not only financial. It allows us to tap into investors that can open doors, like TwoFour54 who is committed to developing the technology ecosystem in the region, Endeavor to the international businesses, and Wamda Capital to a diversity of portfolio companies that offer many potential synergies,” Ataya told Wamda.
“Finding the right strategic partners during this latest round of funding has been a key element for us, because it is clear our future growth depends on more than capital input."
Mumzworld currently has access to over 650,000 mothers in the region, with 45 percent of its customers returning to buy from the site five to six times a year, and stocking over 100,000 products, 15,000 of which it offers exclusively.
Despite obstacles, the company has expanded its catalogue over the past four years.
“The challenge in the early days has been in operating in a young regional ecommerce ecosystem that is very fluid and still shaping itself. We were amongst the pioneers so we had to create a lot of the processes in an ecosystem that didn’t necessarily give us things on a silver platter,” Ataya said.
Since reaching their warehousing capacity more than a year ago, Mumzworld has had difficulty scaling its inventory. This round of investment will allow the company to grow its infrastructure and scale its range of products.
“We are excited to be part of the Mumzworld story and view the company as an exceptional example of regional entrepreneurs building transformational businesses,” said Khaled Talhouni, managing partner at Wamda Capital. “The company’s continued success is reflective of our long term thesis around the rapid development of ecommerce and marketplaces in the region and specifically niche-focused high-margin offerings that are disruptive of traditional retail.”
Like any ecommerce platform, consumer experience must come first and Ataya said she wanted to invest in 'perfecting the customer experience'.
Allen Taylor, VP global networks and managing director of Endeavor Catalyst said: “We are thrilled to be co-investing with Wamda Capital on Mumzworld. This marks our third investment in the region in the past 12 months for our Endeavor Catalyst fund, and we couldn't be more excited to support Mona and her team.”
As much as ecommerce is an attractive sector for investors, it is also scary as it is very cash intensive and logistically complex.
“Investors have been traditionally wary of ecommerce because of it being a long term cash draining business. We managed to show we are different through our strong loyalty and unique unit economics,” Ataya said.