Investors Show a Growing Appetite for Proptech in the Middle East and Africa

As highlighted in our first article on Proptech titled “Is a Proptech Revolution on Its Way in the Middle East and Africa?”, the property sector in the Middle East and Africa (MEA) is at a critical juncture, facing a range of challenges that threaten to hamper economic growth, from housing affordability and infrastructure deficits to the environmental impact of urbanization. In Sub-Saharan Africa, for instance, a housing deficit of over 51 million units, driven by rapid urbanization and population growth, has created an urgent need for innovative solutions. At the same time, the Gulf Cooperation Council (GCC) countries, where real estate contributes more than 10% of GDP, are struggling with inefficiencies in supply chains and long licensing timelines, which have stifled potential growth​.

Proptech is emerging as a powerful tool to address these challenges, offering innovations that can transform how the region builds, manages, and commercializes property. From cost-effective, modular construction solutions that reduce build times by up to 50%, to the introduction of fractional ownership models that democratize property investment, the potential for Proptech to reshape the region’s real estate landscape is vast​. These technological advancements are not only making housing more affordable but are also aligning with the broader trend toward smart, sustainable cities, as seen in initiatives like Saudi Arabia’s NEOM and Egypt’s fourth-generation cities.

In their report titled “Proptech in the Middle East and Africa”, Global Ventures highlights the significant growth and innovation in Venture Capital (VC) investment across the region’s Proptech sector. Between 2019 and 2023, MEA attracted an impressive US $778 million in VC funding for Proptech, with 85% of this investment concentrated in the GCC countries, underscoring the region’s pivotal role in driving technological advancements within the property market.

A growing number of startups are emerging, ready to challenge traditional practices in property commercialization, design, construction, and management. So far, investor interest has focused primarily on commercialization, with 46% of all deals targeting this area.

Let’s look at the top 5 most funded Proptech startups in the MEA region:

1. Property Finder 

Founded in 2007 by Michael Lahyani and Renan Bourdeau, Property Finder provides a platform for property listings, real estate search, and property management, as their websites, apps, and tools help users find, buy, sell, or rent properties in MENA. Property Finder has expanded across the region, including Qatar, Bahrain, and Egypt, with a focus on Saudi Arabia and Turkey, competing with platforms like Dubizzle and Bayut.

In May 2024, Property Finder secured US $90 million in debt financing from Francisco Partners, bringing its total fundraising to US $232 million. The funds were dedicated to repurchasing shares from its initial investor, BECO Capital, amidst ongoing domestic and international interest in the UAE's thriving real estate market. BECO Capital, which has previously invested in notable companies like Careem and Fetchr, has exited its investment in Property Finder with a significant return.

2.  Huspy

Founded in 2020 by Jad Antoun and Khalid Ashmawy, Huspy is revolutionizing the home financing process through its digital platform, which offers mortgage financing and real estate services, alongside a broker portal and an agent app to streamline the mortgage application process. Operating across the UAE and Spain, Huspy facilitated over 25% of all residential mortgages in Dubai within its first year, positioning itself as one of the UAE’s leading mortgage providers.

In May 2024, Huspy secured an undisclosed amount in debt financing, led by Balderton Capital, with additional backing from Fifth Wall and other existing investors. This round surpasses the company’s 2022 Series A, which raised US $37 million and was led by Peak XV (formerly Sequoia Capital India & SEA). The new funds are being allocated toward the development of Huspy's SuperApp for real estate, with the goal of transforming property buying across the MENA region and Europe.

3. Keyper

Founded in 2022 by Omar Abu Innab and Walid Shihabi, Keyper is a Rent Now Pay Later (RNPL) startup that aims to revolutionize real estate transactions and property management in the region by making them seamless and efficient. Keyper’s platform allows tenants to track expenses and pay rent online, while investors gain access to real estate portfolios and data-driven insights. In 2024, Keyper onboarded 3,000 residential units valued at US $2 billion, processed over US $10 million in annual rent payments, and facilitated over US $1 million in annual rent transactions.

In May 2024, Keyper raised US $4 million in pre-Series A funding, along with an additional US $30 million through Shariah-compliant sukuk financing, led by Dubai-based BECO Capital and Middle East Venture Partners. This brought the company’s total funding to US $40.5 million. The funds are being used to digitize the rental experience in the UAE and scale Keyper’s RNPL solution, enabling landlords to receive annual rents upfront while tenants enjoy the flexibility of paying in monthly installments via credit or debit cards and other digital payment methods.

4. Tenderd

Founded in 2018 by CEO Arjun Mohan, Tenderd operates in heavy industries, focusing on construction, energy, marine, and logistics. Its marketplace enables companies to supply and rent construction machinery, while also providing customers with AI-generated insights to optimize asset utilization and reduce emissions.

In June 2024, Tenderd raised US $30 million in Series A funding led by A.P. Moller Holding, bringing its total funding to US $35.8 million. By leveraging sector-specific data, Tenderd is developing AI models tailored to industry needs, setting itself apart from generic models and driving transformative change. Supported by key partners in logistics, ports, energy, construction, and technology, Tenderd is using these funds to accelerate technological advancements and expand globally, particularly through integrating AI into operations across construction, mining, and industrial sectors.

5. Stake

Founded in 2020 by Rami Tabbara, Manar Mahmassani, and Ricardo Brizido, Stake is a digital real estate investment platform that allows individuals to invest in a diverse range of properties with as little as AED 500 (approximately USD 136). Designed to make real estate investing accessible, affordable, and hassle-free, Stake enables investors to purchase shares in high-yield properties, earning passive income from rental payments and capital appreciation.

In June 2024, Stake secured US $14 million in a Series A round led by Middle East Venture Partners (MEVP), bringing its total funding to US $26 million. The new capital will be used to grow Stake’s investor base, introduce new investment opportunities on the platform, and scale its world-class team to enhance its market-leading product.

How can Proptech Startups Navigate the Intricacies of the MEA Property Market?

Proptech startups in the MEA face both immense opportunities and challenges as they navigate the capital-intensive nature of the industry. As highlighted by Sacha Haider, Partner at Global Ventures, the sector's reliance on significant capital expenditure (CAPEX) makes it essential for startups to form strategic partnerships with established incumbents. "The sector’s CAPEX-intensive nature necessitates forming partnerships with incumbents to gain market access and scale effectively," Haider explains. In an environment where venture capital increasingly prioritizes capital efficiency, startups that target inefficiencies without requiring heavy investment will be more attractive to investors.

One of the critical strategies for startups to succeed in this evolving market is focusing on software-driven solutions and services that enhance existing infrastructure. These asset-light models are more scalable and capital-efficient, making them ideal for an industry where leaner investments are becoming the norm. Solutions such as IoT-enabled property management systems or digital platforms for real estate transactions require less upfront capital than physical construction, yet they offer significant value by improving operational efficiency and enhancing tenant experiences.

In the MEA proptech market, the ecosystem is progressing through distinct phases of development. Established segments like property marketplaces are already well-integrated, while newer models, including fractional ownership and tokenization, are gaining momentum. These innovations democratize access to real estate investment, allowing smaller investors to participate in high-yield property assets through digital tokens. At the same time, transformative technologies like modular construction and generative design are poised to reshape how real estate is developed. Though still nascent, these innovations promise to reduce costs and accelerate project timelines.

For startups that can strategically align with these technological advancements while maintaining capital efficiency, the potential is vast. By leveraging partnerships, focusing on scalable solutions, and embracing emerging technologies, startups will be well-positioned to drive the next phase of growth in MEA’s Proptech market. In a region characterized by rapid urbanization, sustainability efforts, and a growing demand for innovative real estate solutions, the future for Proptech startups is only just beginning to unfold.

To dive deeper into the Property market, explore Global Ventures’ full report here.