RIYADH: Saudi real estate technology company Rize has closed an SR132 million ($35 million) “Series A” funding round to expand its presence beyond the nation’s capital.
The round included a mix of equity and debt. funding and was led by Raed Ventures, with participation from SEEDRA Ventures, Aqar Platform, JOA Capital, Nama Ventures, and HALA Ventures.
The funding also featured a debt financing partnership with Partners For Growth to bolster Rize’s financial capabilities.
Given the high down payment required for tenants to secure a rental property in the Kingdom, the company has developed a model that enables tenants to pay annual rent in 12 monthly installments, while property owners receive the full amount upfront.
The rise in Saudi Arabia’s real estate financing underscores the sector’s increasing importance in the Kingdom’s economy, creating a strong foundation for innovative solutions like Rize’s “rent now, pay later” model.
“This investment represents a major turning point in our journey and reflects the investors’ confidence in our vision to develop the leasing sector,” said Ibrahim Balilah, CEO of Rize.
Founded in 2021 by Balilah and Mohammed Al-Fraihi, the Riyadh-based company aims to promote sustainability in the Saudi rental market and claims to have facilitated over SR500 million in total rental value through its platform.
The Series A investment will support Rize’s growth strategy, including expanding its presence beyond Riyadh into the Eastern and Western regions of Saudi Arabia.
The company also plans to enhance its technological offerings, including automating leasing processes via its app to improve user experience.
Al-Frahi, co-founder and chief technology officer of Rize, said: “We have worked hard to develop our internal technologies to enable the automation process and make the rental experience smoother. This investment round is a significant step to enhance our technologies and accelerate the company’s growth.”
Aqar Platform, one of the key investors and a major player in the proptech sector, plans to integrate Rize’s RNPL service into its platform, offering tenants more flexibility in payment options.
The collaboration is expected to enhance the leasing process and provide innovative solutions for users.
Omar Al-Majdouie, co-founder at Raed Ventures, said: “We believe in Rize’s ability to bring about a transformative change in the real estate leasing sector, not only by offering innovative services but also by enabling digital transformation in this important field.”
Waleed Al-Barrak, principal at SEEDRA Ventures, compared Rize’s growth trajectory to that of successful regional fintech leaders, like Tabby and Tamara.
“Rize is transforming the Saudi rental market and redefining the standards of how people rent. Its extraordinary growth mirrors the success stories of industry leaders,” Al-Barrak said.
Real estate loans in Saudi banks reached a record SR846.48 billion in the third quarter of 2024, reflecting a 13.29 percent year-on-year increase, according to data from the Saudi Central Bank.
The growth was driven by retail and corporate lending, with corporate loans jumping 22 percent to SR189.6 billion, while lending to individuals accounted for 78 percent of the total at SAR 656.88 billion, growing at 11.02 percent annually.
Real estate loans now make up nearly 30 percent of the total loan portfolio of Saudi banks, which stood at SR2.85 trillion by the end of the third quarter.
