Egypt-based beauty e-commerce platform Source Beauty, has raised pre-seed funding from 500 Startups.
Founded in 2018 by Lydia Schoonderbeek, Source Beauty acts as a marketplace for beauty products sourced from 55 local brands. The company claims that its sales have gone up seven-fold and simultaneously increased revenues nine-fold since its launch.
“We are very pleased to receive funding from 500 Startups to support Source Beauty on its growth journey. With a sustainable and scalable business model with substantial potential for further expansions, our strategy is to emulate Source Beauty’s concept in selected regional and global markets over the next three to five years,” said Lydia Schoonderbeek, founder and CEO of Source Beauty.
With the latest funding, the company plans to expand to regional markets, grow its team and further develop its platform.
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“The local beauty market remains widely untapped and growing year-on-year at around 15 to 20 per cent. Keen on shaping the market while capturing a major share, we have introduced monthly beauty subscription boxes, a pillar in our value proposition, providing women with high-quality local alternatives that are affordable. Later on, in the year, we look forward to having further investors who support such initiatives to join us onboard,” said Schoonderbeek.
Egypt’s beauty market is expected to reach a market size of $200 million, making it a significant contributor to the economy, noted the company in a press statement.
Sharif El-Badawi, managing partner Mena, at 500 Startups said: “Our mission at 500 Startups is to back talented entrepreneurs and help them create successful companies at scale and Source Beauty is one such company. Despite the current Covid-19 situation, we are delighted to have invested in this e-commerce beauty platform. We wish Lydia and her team the very best and look forward to seeing them scale their business to the next level and excel in the near future.”
From an economic standpoint, it is undeniable that Egypt’s beauty industry has a positive contribution to the Egyptian economy, with an anticipated market size in excess of USD 200 million. Schoonderbeek explains, “Millennial consumers use social media platforms to keep up with beauty trends and for purchase motivation. Source Beauty guides them and focuses on building a personalized relationship with each of its customers’ beauty needs providing a user-friendly browsing and buying experience. Despite the current unfortunate pandemic situation, we have seen growth in our customer base and sales numbers.”
Lydia also commented on the importance of supporting local products. “The local beauty market remains widely untapped and growing year-on-year at around 15 to 20%. Keen on shaping the market while capturing a major share, we’ve introduced monthly beauty subscription boxes, a pillar in our value proposition, providing women with high-quality local alternatives that are affordable. Later on, in the year, we look forward to having further investors who support such initiatives to join us onboard.”