global social market with speed Increasing. With over 1.25 million online social sellers in Egypt alone, the Egyptian social e-commerce market is projected to be worth over $14.8 billion by 2024..
One of its players, Tagger, is a social e-commerce platform that enables online merchants with end-to-end logistics. Today, it is announcing that it has secured $6.4 million in seed funding.
seed round was led by Pan-African focused VC 4DX Ventures. It also included participation from Red Ventures, Beko Capital, Breyer Capital and a few private investors, including Carrom co-founder Magnus Olsson.. This is Breyer Capital’s first investment in the MENA region, and the round has brought Tagger’s total investment to more than $7 million since its launch in December 2019..
Social media platforms like Facebook, Instagram and more recently TikTok have made advertising easier for online merchants to target customers with their products. Offline, there is a wide range of last-mile companies to distribute these products. howeverFor new traders, there is a fragmentation between these processes. they remains to protect themselves during and initiating the delivery of the products; a Completely Execute end-to-end cycles, if you will.
“Let’s say I’m an undergraduate, and I want to build my own e-commerce store. Where do I get products? How do I ship them, where do I store them? Where do I get it done, about financing What do I do, how am I going to accomplish this?” CEO Mohamed Elhorishi told ClearTips about the dilemma facing new traders.
Elhorishy argues that In general A merchant will need to meet with various suppliers to negotiate deals before proceeding to do so with shipping and last-mile delivery companies..
“With Tagger, we can now see the trend of people who would never have been able to build a business on their own, are now using Tagger and getting the exact result of the very painstaking processing if they were to use it. go about manual,” she added.
So how exactly does it work? necessarily, Taager has built a B2B platform to provide a one-stop shop for these online merchants and suppliers. The platform provides a suite of backend and integrated services to online merchants and suppliers, ranging from operational and logistics infrastructure such as warehousing and shipping to host their products, to connecting vendors with wholesalers..
The company claims to use AI and data science to enable first time sellers to start and scale their online business Relatively low risk. It offers a transparent pricing structure and an advanced product selection process, freeing up online sellers to focus on running their business while Tagger handles the end-to-end operations.
After receiving products from suppliers on Taager, merchants can take photos and descriptions on Facebook (via ads or its marketplace platform), TikTok or Instagram..
“They start using their marketing skills. They advertise, run campaigns, and place orders once Has been completed, the merchant will put it on our site and the tagger will complete the end-to-end cycle. This way, traders, without any inventory or stock or cash, can start a business and grow it from one order to a thousand orders per day as Tagger has made it comfortable for them,” the CEO said..
Taager, on the other hand, takes a margin of each sale and aggregates the data points. platform does it To Suggest products that merchants sell frequently and which pricing is best.
Elhorishy explains the need work this strategy. According to him, while Taager is not involved in the day-to-day sales of the merchant’s products, the data it provides will act as a growth engine along with the heavy lifting done by warehousing and providing last-mile services ..
“It’s all about the steps. You need to reach specific data-critical points where you can suggest products that matter to merchants. we understand ourselves mainly As a technology and data company that has the necessary presence on the ground To complete it. We are trying to automate operations as much as possible.”
This timeTaager claims 5,000 merchants on its platform, the key component for the 40% month-on-month growth in gross merchant value (GMV) that the startup enjoys, says Elhorishy.. While he did not comment on the number of suppliers the platform has, he does talk about how difficult it was to onboard them initially.. These suppliers, currently in their hundreds, have a lot of options for selling their products, so Tagger’s catch was to provide them with better pricing and thousands of merchants, meaning their products are sold faster.. with this It had insights on how to expand its products and import them rapidly.
“Now they come to us and ask what? we think market needs, whereas in the beginning it was a huge challenge as they were not used to this kind of business. Another challenge was managing last-mile operations, and we now have teams managing relationships with a wide variety of last-mile companies,” said Elhorishi about some of the challenges facing the company.
A high-margin business, as Elhorishy claims, Taager is looking to deploy new capital into its with speed mounting operations. It is working at all levels in the company and planning to scale in MENA.
Social e-commerce is growing globally, and in MENA as well. Jim Breyer of Breyer Capital is excited This rise and Tagger’s traction in space. They believe there is a great opportunity for Tagger to replicate its unique data-driven approach for further growth across the region..
Tagger’s growth in receiving checks from his principal investor also proved decisive. Peter Orth, Co-Founder and Managing Partner, 4DX Ventures, said, “The Tiger team has achieved very impressive results. incredibly post haste, and also built one of the most influential teams in the ecosystem. Their focus on quality and execution and a very unique approach to empower e-commerce entrepreneurs is a prime combination. We are thrilled to partner with the team on the next phase of the company’s growth.”