fashion kingdom Today (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 venture capital firm. A 15an early stage venture capital firm in the Middle East and North Africa region that has supported the likes of askAnd the Paymob According to TFK, the additional investment was made by TPay of Helios Investment Partners, a subsidiary of Helios Investment Partners.
Fadi AntakiCo-Founder and CEO of TFK, he founded the company in January 2020 with Marian Simica and Karim Abdelkader. They launched the e-commerce platform six months later. Antaki is also a general partner of A15. Antaki noticed the need for a platform that sells fashion products with fast delivery, different payment methods, and referral feature in Egypt. This opportunity made the CEO use the knowledge he gained as a child born into a family with a long history in the apparel business to launch TFK.
“We set up the company before COVID. And in that time, we saw a huge gap or perhaps a lack of focus on a dedicated niche for selling fashion products, recommendations on what to wear, fast delivery, and different payment methods. No one was focused on this, especially in fashion.
TFK deals with a range of products – footwear, beauty products, personal care, accessories, home fashion, etc. – that cater to different demographics. The platform helps local and global brands increase their online sales through its curated marketplace that provides a multi-channel customer experience: a place where shoppers can find all their fashion needs and exchange products when needed.
There are more than 200 brands on the TFK platform, growing 10-15% per month. It has more than 150,000 customers. Each month, about 40% of its sales come from returning customers.
The platform not only lists the products of all these brands for customers’ viewing and buying pleasure, but also provides additional services for them. TFK provides a virtual fitting room that helps brands get used to the sizes of their clients and recommend fashion to clients for different occasions. Also, the 360-degree value proposition for brands involves offering a comprehensive solution covering operations, joint marketing, and digital content creation services.
“Earlier this year, we found that branding was one of the most important areas that we thought we needed to focus on. There are good quality and priced brands that don’t have the know-how on how to sell online. They need a lot of support in operation, and fulfillment,” the CEO said. , warehousing, digital production and photography.” So besides selling their products, we help them with various aspects that would then be able to sell well online, both supporting the process and the marketing aspect. And for us, it’s not just about reselling their products, but about getting in as their digital partners.”
The fashion e-commerce platform makes profits with the traditional model where you charge a markup for products and a shipment model where you take a commission. Supporting revenue streams comes from the additional services you provide to brands, such as photography and marketing. Antaki confirmed that the company’s total sales volume grew 3 times from April 2021 to April 2022.
In 2021, the global fashion e-commerce market was worth nearly $700 billion. By the end of 2022, this number is expected to exceed and reach about $1.2 trillion in three years. According to Statista, the total target market in Egypt is about $4.2 billion. With no clear market leader in fashion e-commerce in Egypt, Antaki says his company is on the cusp of becoming one and staying ahead of others due to its edge with brands.
“We have two main differences. One is the omnichannel experience. The second is not just to be a distributor but to be a partner for brands and help them become sustainable and even grow their business through our platform and other services we can offer.”
Other investors in the round include Lotus Capital, Raba Capital, Sunnyside Venture Partners, Foundation Ventures, Cairo Angels, and fashion industry experts such as Paul Antaki and Nasser El Shorbagy.
According to the company’s statement, TFK will use the investment to accelerate its growth, build scalable technology and grow its team, whose employees make up 43% of the total workforce and 50% of the company’s managers. “We intend to meet the needs in terms of talent, build our technology, improve our processes, and the end customer experience. So, basically, using money in technology, talent, and operations.”