In a discussion with My Startup World, Shawkat Shegem, Co‑Founder & CEO of Toolmart, explains how the company is transforming industrial procurement through technology, data intelligence, and a disciplined, scalable growth model.
What motivated you to start Toolmart, and what gap in the Middle East industrial supplies market does it address?
Toolmart wasn’t something we set out to build from day one — it evolved naturally. The idea began with my co-founder, Ahmed Al Hinity, who initially launched a small e‑commerce store for industrial supplies. What started as a side project quickly revealed deeper inefficiencies in the procurement landscape. As we dug in, it became clear that the industrial supply chain across the region was largely unorganized, offline, and non‑digitized. Toolmart emerged as a response to this gap — a platform built to streamline sourcing, eliminate friction, and help businesses save both time and money by leveraging technology to modernize procurement.
How does Toolmart leverage technology to simplify and modernize the sourcing and procurement process for businesses?
Toolmart operates across two integrated verticals designed to simplify industrial procurement. The first is a user‑friendly e‑commerce platform — available via website and app — where individuals and businesses can browse over 45,000 products, compare specifications and prices, chat with customer support, and receive deliveries within 48 hours. It’s a fast, transparent, and accessible way to procure non‑core supplies.
The second vertical caters to businesses with complex sourcing needs. Clients submit RFQs through our platform, and we combine historical data with live vendor pricing to recommend the most suitable product at the best value. Our system evaluates logistics, shipment mode, delivery timelines, product origin, vendor reliability, and more — ensuring recommendations are both cost‑effective and execution‑ready.
We’re now developing AI capabilities to automate this vertical, enabling instant pricing and intelligent product suggestions based on thousands of variables. This will significantly reduce manual processing, improve lead times, and increase win rates.
What unique challenges have you encountered in building a B2B tech platform in the industrial sector, and how did you overcome them?
Industrial procurement has followed the same offline, relationship‑driven model for decades — and Toolmart is challenging that status quo. The biggest hurdle has been resistance to change. Many companies remain comfortable with manual processes, even when the benefits of digitization are clear. But behavior shifts gradually, as we’ve seen in other industries. Our approach has been steady and deliberate: build trust, prove value, and evolve the market one step at a time.
Along the way, we’ve embraced trial and error — testing new products, learning from failures, and refining our approach. True innovation takes time, and we’re committed to iterating until we get it right.
How does Toolmart ensure product quality and supplier reliability?
We handpick our supplier network based on past performance, certifications, and fulfillment capacity. Our team conducts regular audits and quality checks to maintain high standards and minimize procurement risks for clients.
What role does data analytics or AI play in optimizing procurement and inventory management?
Toolmart operates on a lean, just‑in‑time model — no warehouses, no excess inventory. We source exactly what clients need, exactly when they need it.
AI and data analytics are central to this approach. By combining historical data with real‑time vendor quotes, we’re building a system that delivers instant, accurate pricing in minutes. This means faster turnaround times, more RFQs processed, and a higher win rate — bringing unprecedented speed and precision to industrial procurement.
How has the industrial sector in the Middle East responded to digital transformation, and what trends are you seeing?
Adoption has been gradual, given that procurement has been handled offline for decades. We know this shift will take time, and we’re approaching it step by step. That said, we’re seeing clear progress. Since launch, more businesses have begun engaging with our platform and leveraging our tech‑enabled services. This growing adoption is translating into tangible results and reinforces our belief that digital procurement is gaining momentum across the region.
What strategies has Toolmart used to build trust and scale its user base in a traditionally offline market?
Our strategy is built on three pillars: quality, cost, and delivery. We’ve earned trust by offering competitive and transparent pricing, fast communication, and reliable fulfillment. Every product comes from a vetted, audited vendor to ensure consistent quality. Our platform uses historical purchasing data to recommend the most suitable items at the best value, and we manage logistics end‑to‑end to guarantee on‑time delivery. This combination of reliability and efficiency has helped us gain traction in a market long dominated by offline processes.
Could you share your experience with fundraising, and what advice would you give to other B2B startups?
Our fundraising approach focused on presenting clear traction backed by real data — something investors value deeply. Highlighting successful global benchmarks was equally important, shifting the conversation from “Will this work?” to “How big can this get?” Learning from founders who’ve been through the process also helped us avoid common pitfalls. For any B2B startup raising capital: know your numbers, know your market, and don’t hesitate to seek advice.
What are your key priorities for Toolmart’s growth and expansion?
Our priorities for Toolmart’s growth are shaped by the momentum we built in 2025, a defining year where we achieved 58% revenue growth, 65% higher revenue per headcount, a 300% increase in quotations issued, 120% SKU expansion, and maintained 110% average YoY growth. These results prove that our model scales with discipline, improves efficiency as it grows, and creates long‑term structural value in the B2B procurement market.
Looking ahead, our focus is on deepening this foundation — scaling revenue, strengthening productivity, and expanding catalog depth while continuing to refine our enterprise‑driven model. Iraq remains our core market, where we still see significant untapped potential. We’re also investing heavily in AI‑driven automation to accelerate RFQ pricing, improve lead times, and increase win rates.
With strong fundamentals and a disciplined growth engine, we’re confident about reaching new heights in 2026 and beyond.
