Baghdad-based B2B startup Toolmart is making waves in the industrial supply chain space with the announcement of its seed funding round, led by Plus VC and Oasis500, along with support from several prominent regional angel investors. While the funding amount remains undisclosed, the backing itself is a clear vote of confidence in Toolmart’s disruptive model and ambitious regional growth plans.
Transforming Procurement with Smart Tech
Launched in 2022 by Shawkat Shegem, Ahmed Al Hinti, and Nadeem Al Salem, Toolmart was born from the founders’ frustrations with the outdated and inefficient procurement systems in the industrial sector.
In most large organizations, procurement teams spend nearly 80% of their time chasing items that make up just 20% of overall purchasing value. Toolmart solves this inefficiency by offering a tech-enabled, inventory-light procurement platform that functions like an extension of in-house procurement teams.
- Cuts sourcing time
- Reduces costs
- Enhances decision-making through real-time data
How Toolmart Works
At the core of Toolmart’s offering is a capital-efficient, algorithm-driven platform that connects enterprises with a wide network of vendors. Their system uses:
- AI and machine learning to analyze purchasing behavior
- Inventory-light operations to avoid overhead and risk
- Smart recommendations based on price, delivery time, and product fit
Toolmart has already listed over 35,000 SKUs, completed 10,000+ orders, and serves 100+ enterprise clients. In Q1 2025, it posted a 38% YoY growth rate, its best quarter to date.
Expanding Beyond Iraq
Having proven its model in Iraq, including strong adoption by oil & gas firms, construction companies, NGOs, and institutional buyers, Toolmart is now setting its sights on regional expansion across the Middle East.
The fresh capital will be used to:
- Grow the team
- Expand into new markets
- Enhance the platform’s tech and capabilities
Shawkat Shegem, CEO of Toolmart, shared:
“We’re proud to have the backing of investors who believe in our mission and bring invaluable experience to the table. Their support validates our model and motivates us to keep pushing forward.”
What Investors Are Saying
Hasan Haider, Founder of Plus VC:
“Toolmart is tapping into a huge opportunity in a sector that’s been largely ignored by tech. Their business model is scalable, smart, and capital-efficient.”
Luma Fawaz, CEO of Oasis500:
“Toolmart’s approach to digitizing procurement is both timely and impactful. We’re excited to help them scale across the region.”
A Capital-Efficient Future
With zero inventory risk, no bad debt, and strong gross margins, Toolmart stands out as one of the most capital-efficient industrial startups in MENA. As it scales across the region, the company aims to modernize industrial procurement—bringing speed, transparency, and efficiency to a traditionally sluggish sector.