- Iraq-based B2B e-commerce startup Toolmart has secured a seed funding round for an unknown amount, led by Plus VC and Oasis500, with participation from other regional angel investors.
- Founded in 2022 by Shawkat Shegem, Ahmed Al Hinti, and Nadeem Al Salem, Toolmart offers a tech-enabled, inventory-light procurement platform that helps large enterprises cut sourcing time, reduce costs, and improve procurement efficiency.
- The funding will support the company’s growth, expanding its team and increasing its footprints in new markets across the Middle East.
Press release:
Toolmart, a leading B2B tech startup revolutionising how industrial supplies are sourced and procured in the Middle East, has raised a seed funding round led by Plus VC, the most active MENA VC and Oasis500, alongside prominent regional angel investors. The funding will support the company’s continued growth, expanding its team and increasing its footprints in new markets across the Middle East.
Founded in 2022 by Shawkat Shegem, Ahmed Al Hinti, and Nadeem Al Salem, Toolmart was created in response to the co-founders’ firsthand experience with the inefficiencies of sourcing non-direct supplies in a fragmented, largely offline ecosystem. Procurement teams often spend 80% of their time sourcing items that account for just 20% of total procurement value. Toolmart addresses this critical pain point through a tech-enabled platform that streamlines the process—acting as an extension of the procurement team to save time, reduce overhead costs, and enhance sourcing efficiency.
“We are deeply honoured to have the support of such highly respected investors who not only bring unparalleled regional expertise but also a proven track record of empowering disruptive ventures,” said Shawkat Shegem, Co-Founder and CEO of Toolmart. “Their belief in our mission and their commitment to join us on this journey serve as a powerful endorsement. We are proud to have them as partners as we strive to redefine the future of our industry.”
Using an inventory-light, capital-efficient model, Toolmart leverages a vast vendor network and algorithmic analysis to provide clients with the most suitable options based on price, delivery, and product fit. The system continuously improves through machine learning by analysing purchasing behaviour and historical data.
“Toolmart was born from firsthand experience with the persistent inefficiencies that have long plagued the industrial supply chain,” said Ahmed Al Hinti, Co-Founder and COO of Toolmart. “By building a tech-first, data-driven platform, we’re enabling smarter, faster, and more cost-effective procurement, empowering businesses to operate more efficiently and focus on their core strengths.
“In just over two years, we’ve fulfilled more than 10,000 orders, listed over 35,000 SKUs, and built a growing customer base of more than 100 enterprise clients. In Q1 2025 alone, we achieved 38% growth year-over-year, our strongest quarter to date. We are excited to build on this momentum as we set new milestones and cement our position as pioneers in industrial procurement across the region.”
Toolmart’s successful launch in Iraq has validated its business model in complex, high-demand markets. With strong traction among oil & gas operators, construction firms, NGOs, and institutional buyers, the company is now preparing to scale across the wider Middle East region.
Commenting on the fundraising announcement, Hasan Haider, Founder and Managing Partner at Plus VC, said, “Toolmart is addressing a significant opportunity in a sector that has long been underserved by digital innovation. The team’s deep domain expertise, combined with a scalable and capital-efficient business model, positions them to lead the modernisation of industrial procurement in the region. Toolmart is a strong example of our investment thesis in action, and we are proud to support Shawkat, Ahmed, Nadeem, and their team as they work hard to become leaders in this space.”
Luma Fawaz, CEO of Oasis500, said, “Toolmart is bringing much-needed innovation to a traditionally outdated sector. Their ability to streamline procurement for large enterprises through a tech-enabled, data-driven platform is impressive. The team’s domain expertise, rapid traction, and clear vision for regional scale made this an exciting opportunity for us. We are pleased to support Toolmart as they continue to digitise and transform industrial procurement across the Middle East.
With zero inventory and no bad debt, Toolmart’s model allows it to operate at scale while maintaining strong profit margins, making it one of the most capital-efficient startups in the industrial supply chain space.