Saudi Arabia’s Rize, a real estate tech firm, has successfully raised SR132 million ($35 million) in a Series A funding round to extend its operations beyond Riyadh. This round included both equity and debt and was spearheaded by Raed Ventures, with contributions from SEEDRA Ventures, Aqar Platform, JOA Capital, Nama Ventures, and HALA Ventures.
Rize has partnered with Partners For Growth for debt financing, enhancing its financial strength. The company addresses the high down payment issue for tenants by allowing them to pay rent in monthly installments while landlords receive the full annual amount upfront.
The surge in Saudi real estate financing highlights its growing economic significance, paving the way for innovative models like Rize’s “rent now, pay later.” CEO Ibrahim Balilah views this investment as pivotal, reflecting investor confidence in their vision to transform the leasing sector.
Founded in 2021 by Balilah and Mohammed Al-Fraihi, Rize aims to enhance sustainability in the rental market, having facilitated over SR500 million in rentals through its platform. The new funds will support Rize’s expansion into Saudi Arabia’s Eastern and Western regions and improve its tech offerings, including leasing process automation via its app.
Co-founder and CTO Al-Fraihi emphasizes their commitment to technological advancements to streamline rental experiences. Aqar Platform, a key investor, plans to integrate Rize’s services, offering tenants more payment flexibility.
Omar Al-Majdouie of Raed Ventures believes in Rize’s potential to revolutionize the real estate sector through digital innovation. Waleed Al-Barrak from SEEDRA Ventures likens Rize’s growth to regional fintech leaders, highlighting its transformative impact on rental standards.
Real estate loans in Saudi Arabia reached a record SR846.48 billion, marking a 13.29% year-on-year increase, driven by both retail and corporate lending. Corporate loans surged 22% to SR189.6 billion, while individual lending comprised 78% of the total, growing at 11.02% annually. These loans now constitute nearly 30% of Saudi banks’ total loan portfolios, which totaled SR2.85 trillion by the end of the third quarter.