Iraq-Based Toolmart Wraps Up Undisclosed Seed Round

Toolmart, a B2B tech startup transforming the procurement of industrial supplies in the Middle East, has secured seed funding in a round led by Plus VC, a leading early-stage venture capital firm known for backing bold tech startups across the MENA region, as well as Oasis500, a Jordan-based pre-seed and seed investor with deep expertise in accelerating high-impact startups.

Founded by Shawkat Shegem, Ahmed Al Hinti, and Nadeem Al Salem in Iraq in 2022, Toolmart streamlines procurement for institutional buyers with a scalable, low-inventory digital platform. The new investment will fuel the company’s ongoing expansion, team growth, and entry into new markets across the region. 

In a conversation with Inc. Arabia, Shegem, who also serves as the CEO of Toolmart, told us that the company is leveraging technology and scale to help procurement teams source industrial supplies faster, more efficiently, and at better prices. “Industry research shows that 80 percent of a procurement team’s time is spent sourcing non-direct supplies, which represent only 20 percent of total procurement value," he said. “This imbalance is due to the fragmented, unorganized, and largely non-digitized nature of the supply chain.” 

This issue is precisely what Toolmart is aiming to solve with its inventory-light, capital-efficient approach. The platform does this by relying on a broad vendor network and algorithm-driven insights to offer clients the best-matched options based on pricing, delivery timelines, and product compatibility.   

“Toolmart addresses this inefficiency by digitizing and streamlining the procurement process—acting as an extension of the procurement team," Shegem explained. "Our platform simplifies sourcing, reduces overhead, and helps businesses save time and money by centralizing access to trusted suppliers, real-time inventory, and data-driven purchasing insights.”  

Reflecting on Toolmart’s experience in Iraq, Shegem emphasized that operating in a country that has endured over 30 years of conflict and political instability presents undeniable challenges—but it also offers immense potential. “Iraq is home to more than 45 million people, and it boasts an annual gross domestic product (GDP) of US$250 billion," he noted. "Since launching Toolmart in 2022, we’ve faced hurdles ranging from hiring qualified talent to attracting interest from global investors."  

But those early obstacles haven’t shaken the team’s belief in Iraq’s long-term promise. “Iraq’s business environment has improved significantly in recent years and continues to move in a positive direction," Shegem said. "Despite the complexity and fragmentation of the market, we see Iraq as a major opportunity and believe we’ve only just begun to unlock its potential. We’re optimistic about the future and confident that many strong startups will emerge from Iraq in the years ahead.” 

Shegem told us that Toolmart’s ability to scale quickly is rooted in its focus on technology and data. “Since our launch in 2022, we’ve focused on building a robust supplier network and expanding our product catalog—now offering over 35,000 stock keeping units (SKUs), with a target of surpassing 100,000 by the end of 2025,” he explained. “Our ability to scale has been driven by leveraging technology in a market that remains largely offline. By gathering and analyzing data from past orders, we continuously refine our offering and deliver real value to our customers.”  

He noted that these factors have fueled the company’s growth to date. “This combination of scale, technology, and operational excellence has been key to our progress so far,” Shegem said. Perhaps the clearest evidence of the vast opportunity that the company is tapping into is the confidence that the recent round of investment indicates in the company. “Our well-rounded and experienced founding team has been a key factor in attracting investor interest. Additionally, we demonstrated strong traction through a globally validated business model.”  

Shegem added, “We achieved real revenue growth, completed over 10,000 orders, and served more than 100 enterprise clients—all without holding inventory or incurring bad debt. The success of similar models globally further reinforced investor confidence in our approach. The capital raised will be used to grow our team and enhance our technology platform.” As for Toolmart’s roadmap for expansion, Shegem emphasized the importance of getting the fundamentals right before scaling too broadly. “Over the next year, our primary focus will remain on Iraq as we continue to refine and fully implement our technology model,” he said. “We believe it’s essential to perfect our core platform in a complex, high-demand market before pursuing broader expansion.”  

Looking ahead, Saudi Arabia is firmly in Toolmart’s sights. “Once we’ve validated the model’s scalability, our next step will be regional growth—starting with Saudi Arabia, which is at the top of our list,” he explained. “The opportunity in the KSA is significant, driven by the market’s scale, the government’s push for industrial development, and the rising demand for efficient, tech-enabled procurement solutions.”  

As for aspiring founders aiming to scale beyond their home markets and attract regional investors, Shegem’s advice was to hire the right talent. “I believe that if you can attract the right people and align them around a shared vision, everything else becomes possible,” he said. “Market, product, and strategy are all important—but without the right team, it's difficult to scale or earn investor confidence. The key is to find exceptional people and inspire them to join you on the journey and do what it takes to succeed.”  

 Pictured in the lead image from left to right is Nadeem Al Salem, Shawkat Shegem, and Ahmed Al Hinti, co-founders of Toolmart. Courtesy of Toolmart.