Middle East e-commerce SupplyVan taps into the hardware market with strong growth momentum

According to foreign media reports recently, SupplyVan , a UAE-based MRO (maintenance, repair, and overhaul) vertical e-commerce platform, successfully seized the local larger hardware industrial supplies e-commerce market last year and is expected to develop steadily in 2021.

It is reported that SupplyVan has grown at a compound annual growth rate of 64% in the past year , which is enough to illustrate the development potential of the platform. During the epidemic, SupplyVan met the growing customer demand and increased its customer base by 30% .

Unlike Amazon and Noon, SupplyVan only deals in hardware industrial products . The platform covers power tools, hand tools, safety, hardware accessories, electrical equipment, lighting, measurement and testing, screws, etc. It has 34 major categories and 100,000 products.

SupplyVan serves industries, workshops, hotels, offices, contractors, and businesses of all sizes. Because of its vertical products in this field, SupplyVan has captured a larger industrial supplies market in Amazon and Noon.

SupplyVan is similar to Alibaba, supporting both bulk purchases by enterprises and piece-by-piece purchases by individual buyers, i.e. B2B and B2C. Ali Asgar Raja , CEO of SupplyVan, said: “In the past year, we have focused on the B2C model, which has helped us consolidate our position in the market.”

Of course, SupplyVan's main revenue still comes from To B business. SupplyVan's sales grew 30% in the last quarter of 2018, of which 70% of sales revenue came from enterprises and the rest from individual buyers. Raja said that focusing on B2C business in 2020 paved the way for SupplyVan's focus on To B sales this year, as SupplyVan has established key partnerships with industry leaders in the region. Raja plans to launch technology-supported procurement solutions, which will further promote cooperation between the platform and enterprises.

Currently, SupplyVan is actively seeking capital and plans to complete its Series A financing by June this year. Raja is very optimistic about SupplyVan's growth prospects. He plans to expand its operations, expand its team, improve its technology, and expand into other countries outside the UAE after obtaining financing.

middle East

E-commerce