Saudi Arabia proptech company Mabaat has secured USD 2.4 million in a recent seed funding round, according to a recent announcement.
The round was led by Riyadh-based venture capital firm Derayah Ventures, along with participation from Saudi-based early stage venture capital firm SEEDRA Ventures.
The company will use the funds to increase outreach efforts, enhance its technology stack, and strengthen hiring.
Mabaat offers a digital property management platform for short-term rental stays. Accommodation types include mid to high-end private homes and compounds across Saudi Arabia markets.
The platform provides information in real time, helping to streamline operations such as booking, payment, sterilisation and cleaning, and maintenance.
The Saudi Arabia proptech startup was founded in October 2019 by Talal Al Sorayai, CEO of Mabaat.
“Mabaat’s innovative platform is unique as it offers property partners higher occupancy levels at attractive rates. With this direct support that we have received from the Saudi government and our partnership with the Ministry of Investment and Tourism, Mabaat is now well-positioned to disrupt the alternate accommodations market throughout the Kingdom,” Al Sorayai said.
NEOM PROVIDES A BOOST FOR SAUDI ARABIA PROPTECH
Planned zero-carbon city NEOM is expected to spur the Saudi Arabia proptech sector forward. The city banks heavily on clean energy and smart technologies, and has received government funding commitments to the tune of USD 500 billion.
Along with NEOM, entertainment hub Qiddiya city, and ecotourism mega project Red Sea Project are also expected to increase digitisation in the construction industry in Saudi Arabia.
More recently, Saudi Arabia-based investment management and financial advisory company Watheeq Financial Services launched a SAR 100 million (USD 26.7 million) closed-ended proptech fund. The Watheeq Proptech VC Fund is expected to make its first close in Q3 this year.
Some of the top technologies receiving attention in the Saudi Arabia proptech space include blockchain, artificial intelligence, virtual and augmented reality, drones, Internet of Things, robotics, digital twins, and 3D printing.
In H1 this year, VC funding reached ‘record-breaking growth’, especially amongst early stage deals. Meanwhile, two-thirds of Saudi startup backers were also Saudi-based. Ticket sizes of USD 3 million or less accounted for 73% of all deals.
Ecommerce and fintech are two other startup sectors receiving attention in Saudi Arabia. Some of the biggest funding rounds include a USD 30.5 million Series B round by B2B marketplace startup Sary, and a USD 110 million Series A round by Tamara.
Photo credit: www.wsj.com/articles/saudi-crown-princes-vision-for-neom-a-desert-city-state-tests-his-builders-11619870401,
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