"We Got Funded!" KSA-Based Ejari Raises US$14.65 Million In A Seed Round Led By Partners For Growth, BECO Capital And anb Capital "Our broader ambition is to evolve into a comprehensive "rental super app," supporting customers throughout each touch point of their rental journey."

Ejari, a Saudi Arabia -based property technology (proptech) and fintech platform that offers a Rrent-now-pay-later (RNPL) solution for residential units has raised US$14.65 million (SAR 55 million) in a seed round led by Partners for Growth, a US-headquartered financial institution that offers tailored debt solutions, BECO Capital, a UAE-headquartered venture capital (VC) firm that invests in early-stage startups, and anb Capital, a Saudi-based investment management, advisory and brokerage firm.

The round also saw the participation of the following KSA_based entities: Rua Ventures, a VC fund; Alinma Pay, a digital payments platform and the investment technology arm of Alinma Bank; Vision Ventures, a sector-agnostic VC firm; and Aqar, a real estate property listing platform. Additionally, ejari's existing investor Salica Oryx Fund, a UK-based investment firm that targets early-stage technology companies, as well as several angel investors were a part of the round.

Founded in 2022 by Yazeed Al-Shamsi, Fahad Albedah, Mohammed Alkhelewy and Khalid Almunif and based out of Riyadh, Ejari's RNPL platform has already generated over $30 million in demand, and is currently operational across 17 cities in the Kingdom. As such, the newly raised capital -announced as a healthy "mix of debt and equity"- is all set to expand its customer base while concurrently accelerating market penetration. "A key priority is to scale our operations by strengthening our technological infrastructure, enhancing our platform's capabilities, and expanding product offerings," explains Al-Shamsi. "Immediate areas of focus will include growing our team, opening new customer acquisition channels, and improving the user experience through the launch of our mobile app. In the medium term, we plan to continue scaling across Saudi Arabia, with ambitions to diversify beyond residential properties and tap into the different pockets of demand within commercial rentals, including retail, offices, and industrial rent."

Underscoring Ejari's many ambitions, however, is the simple vision with which the venture began: to democratize access to real estate properties and reduce the rental bottlenecks that tenants continue to face. And according to Al-Shamsi, the Saudi rental market is eager for a solution such as Ejari's RNPL service. "70% of tenants in Saudi Arabia are required to pay rent annually or semi-annually making it a market that has been hungry for such a service- indeed, consumers understand our value proposition!" he adds. "RNPL offers a significant shift from the traditional payments structure. Tenants who might struggle with paying large upfront amounts benefit from the flexibility of spreading their payments across 12 months. This aligns rent payments with other monthly expenses, reducing financial strain and allowing for better budgeting. It lowers move-in costs, especially for individuals who lack substantial savings, are early in their careers or have just recently moved to the country."

Related: The Saudi Model (A Blueprint for Growth and Pioneering)

Here, Al-Shamsi is quick to note that certain macroeconomic factors have also played a role in the acceleration of Ejari's growth trajectory. "The digitization of financial services, growing demand for fintech solutions, and the increase in expatriate populations have created fertile ground for flexible payment options like RNPL," he explains. "Our main thesis revolves around Riyadh, the Saudi capital, and how we believe it will be the next New York. Several factors are at play here, but the primary one is rent affordability. Rental inflation in Saudi Arabia has been averaging 30% to 40% over the last few years. This, coupled with the high interest rate environment, rising property prices, and the expected expat influx of anywhere from two to seven million people over the next six to seven years, creates a unique opportunity."

Backed by the success Ejari has experienced so far, and a clear mission statement guiding its goals, Al-Shamsi says he and his team are confident about what comes next. "Given Saudi Arabia's dynamic growth and economic transformation, our goal is to become the leading financial services platform that makes renting more affordable, flexible, and accessible, offering innovative solutions that align with the evolving needs of the Kingdom's rapidly growing population," he declares. "By addressing the critical challenges of housing affordability, we want to contribute to a more inclusive and sustainable real estate market in one of the world's fastest-changing economies."

That said, the prospect of moving into rental markets beyond the Kingdom's are entirely on the cards, Al-Shamsi iterates. "While our primary focus will remain on the Saudi market, given its size—estimated to exceed $50 billion annually—we believe there is significant untapped potential to capitalize on over the next five years before considering expansion into other geographical markets," Al-Shamsi says. "Our approach is to first fully establish ourselves within Saudi Arabia, where the demand for flexible rental solutions continues to grow rapidly given the macroeconomic factors at play."

Indeed, it is this approach of rationality that piqued the interest of the many investors who took part in Ejari's seed round. " This investment is more than a financial commitment; it's a pledge to accelerate the Kingdom's economic diversification through technological innovation and create a more inclusive economy, thereby enhancing the quality of life for Saudi citizens in accordance with the objectives of Vision 2030," said halid S. Al-Ghamdi, CEO of anb capital, in a statement. "We are shaping a future where financial accessibility and innovation go hand in hand, propelling Saudi Arabia towards even greater growth and prosperity." On his part, Abdulaziz Shikh Al Sagha, General Partner at BECO Capital, added that Ejari's "founding team's strong expertise and clear vision make them exceptionally well-positioned to drive meaningful impact in the market and we look forward to working closely with them as they continue to scale."

As the Ejari team now gear up for their future plans, Al-Shamsi reveals that ambitions of becoming a super app are just on the horizon for the startup. "A key component of our mission is driving financial inclusion by making housing more accessible and affordable for a broader demographic," he says. "As such, through flexible payment options and expanded services, we seek to address the pressing challenges of housing affordability in Saudi Arabia, aligning with the Vision 2030 goals of increasing financial accessibility and sustainability. Looking ahead, our broader ambition is to evolve into a comprehensive "rental super app," supporting customers throughout each touch point of their rental journey. While we currently focus on payment facilitation through RNPL, we aim to expand into additional services such as "furniture as a service," facility management, and even packing and moving services, creating a seamless, technologically driven rental experience from start to finish."