Toolmart Secures Seed Funding to Revolutionise Middle East B2B Procurement

There's some pretty intriguing news emerging from the Middle East business scene as Toolmart, an Iraq-based startup specialising in tackling those notoriously clunky B2B procurement processes, has recently snagged itself a vital seed funding round. The investment amount remains under wraps for now, but it's known that heavy hitters Plus VC and Oasis500 jointly led the round, alongside a handful of private angel investors.

If you haven't come across Toolmart before, here's the lowdown: established in 2022, the company sprang to life largely out of frustration. Co-founder Ahmed Alhanti once struggled first-hand with sourcing indirect procurement supplies—a headache familiar to anyone who's experienced the chaos of their company's purchasing department grinding productivity to a halt over some small order. As Alhanti explains, procurement teams typically lose around 80% of their precious time chasing after items that frankly don't even account for more than a fifth of overall buying value. Quite astonishing, isn't it?

Armed with a tech-forward strategy, Toolmart set about building a smarter approach. Their platform takes confusing offline and fragmented purchasing processes online, streamlining operations, cutting overhead costs, and allowing procurement specialists to focus instead on strategy and growth. With low inventory expenses and minimal storage requirements, Toolmart leans heavily on an extensive supplier network, intelligent analytics, and customised recommendations on price, delivery speed and product quality.

And get this, they've even harnessed machine learning technology, which carefully analyses customer purchasing habits and behaviour, regularly fine-tuning and upgrading the platform for an ever-improving experiance.

Numbers tell a strong story too; in only two years of trading, they've already racked up over ten thousand orders from a catalogue listing more than thirty-five thousand items. An impressive customer base of over a hundred companies currently benefits from their platform, with growth rates showing no signs of slowing—38% year-on-year as of the first quarter of 2025 alone, marking their strongest-ever quarter.

Toolmart is no slouch when it comes to profitability either. Their business model aims at limiting stock stagnation and eliminating bad debts, helping them maintain attractive profit margins even during rapid expansion. It's easily one of the smartest investments around for backers looking to tap into the region’s burgeoning tech-savvy procurement industry.

Lama Fawwaz, CEO of Oasis500, expressed excitement about Toolmart’s venture. She pointed out how the startup is bringing much-needed innovation to a traditionally sluggish industry sector. According to her, the team's industry know-how, combined with their superb platform and clear regional expansion vision, presents an "unmissable opportunity". Fawwaz praised the tech-driven and data-focused platform’s ability to simplify buying procedures for large-scale corporate purchasers, saying that support for Toolmart aligned naturally with Oasis500’s commitment to bringing digital refreshment to industries across the entire Middle East region.

Arageek readers familiar with the challenges of corporate bureaucracy—spending endless hours chasing overpriced printer cartridges or tracking down elusive replacement tools—might find much to appreciate in Toolmart’s rapidly expanding regional story. It'll certainly be exciting watching this innovative young enterprise continue to reshape traditional procurement models across the Middle East.

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